Olam International said Friday it will seek a primary listing on the London Stock Exchange for its operating group Olam Food Ingredients, while concurrently seeking a listing in Singapore, in the first half of 2022.
Olam Food Ingredients, or OFI, was created in early 2020 in a re-organisation of Olam.
“The primary listing on the LSE will give us access to London’s large and diverse investor base, with its deep and liquid capital markets, and enable us to benefit from its strong understanding of and research coverage across the food and beverage sector. The concurrent listing in Singapore will also enable us to retain our strong local shareholder base and further tap into growing investor appetite in Asia,” A. Shekhar, CEO of OFI, said in the statement filed to SGX.
OFI works with food and beverage brands globally, including manufacturers, retailers and food-service outlets, as well as some niche and premium players.
“With deep-rooted presence in the countries where the raw materials for its cocoa, coffee, dairy, nuts, and spices ingredients are produced, OFI has built sustainability and traceability into its core business model, enabling better quality and more reliable and transparent supply,” Olam said in a filing to SGX. “OFI has a unique global scale and presence across the value chain to deliver delicious and nutritious food ingredients and solutions in an environmentally sustainable way.”
OFI posted revenue of US$9.1 billion, or S$12.5 billion, in 2020, and earnings before interest and tax (EBIT) of US$600 million, or S$800 million.
In a separate release Friday, Olam reported its first half net profit increased 26.7 percent on-year to S$421.5 million on revenue of S$22.8 billion, up 33.7 percent on-year.
For the first half, OFI reported its first half EBIT rose 22.9 percent, while Olam Global Agri’s, or OGA, EBIT grew 58.9 percent.
OGA is also evaluating various strategies, which could include a potential IPO and concurrent demerger from the Olam group, the filing said.