Olam Group Ltd. said first-half profit sank about 90% due to lower crop yield from its almond orchards, dealing another setback to the agricultural commodities trader that’s seeking to list its unit in Saudi Arabia.
(Bloomberg) — Olam Group Ltd. said first-half profit sank about 90% due to lower crop yield from its almond orchards, dealing another setback to the agricultural commodities trader that’s seeking to list its unit in Saudi Arabia.
Profit in the first six months of the year fell to S$48 million from S$429 million a year earlier, the Singapore-based company said in an exchange filing.
The weaker results come as the company is already facing a delay in its plan to list Olam Agri in Saudi Arabia in the first half. Olam said late May that it didn’t have all the regulatory approvals needed for the initial public offering, and would continue to pursue the listing at the next practical window.
Olam is now targeting for Olam Agri’s IPO to take place by the first half of 2024, it said in the statement.
Olam, which counts Singapore’s state-owned investment fund Temasek Holdings Pte. and Japan’s Mitsubishi Corp. as its shareholders, announced the IPO plan for Olam Agri in January, saying it would be the first listing of a global firm in Saudi Arabia. There would be a concurrent dual listing of the unit in Singapore.
Olam Agri sells grains and seeds and produces everything from edible oils to pasta. It’s one of Olam’s main units, formed in a reorganization announced in early 2020. Olam targeted $600 million to $700 million in primary proceeds, and $300 million to $400 million in secondary proceeds from the IPO.
The listing of its other food ingredients unit, known as ofi, was supposed to take place after Olam Agri. Olam had planned a primary listing of ofi in London by the second quarter of 2022, but that was delayed due to the war in Ukraine.
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