By Brazil Stock Guide – BRF and Marfrig have placed the IPO of Sadia Halal at the center of their global strategy after closing a joint venture with a Saudi sovereign-backed partner, creating a platform with an enterprise value of $2.07 billion and a potential path to a higher market valuation in Riyadh.
The companies said preparations for the IPO will begin immediately after the closing of the transaction with Halal Products Development Company, a subsidiary of Saudi Arabia’s Public Investment Fund. The planned listing is expected to take place on the Riyadh stock exchange, subject to market conditions and regulatory approvals.
Sadia Halal brings together production facilities in Saudi Arabia and the United Arab Emirates, distribution companies in five Gulf countries and direct exports to customers across the MENA region. The platform gives BRF and Marfrig access to more than 350 million consumers in 14 Islamic countries, positioning the business as one of the largest halal protein platforms in the world.
The $2.07 billion figure is not necessarily the final IPO valuation. It is the enterprise value assigned to the platform at launch — a reference point that could be tested, and potentially exceeded, once investors in Saudi Arabia assess the business as a listed food-security and consumer-growth asset.
The structure also keeps Brazil at the core of the business. BRF signed a 10-year renewable supply agreement to provide products to Sadia Halal from its Brazilian plants, with pricing set on market terms and subject to transfer-pricing rules. The joint venture will also be allowed to use BRF and Marfrig brands, especially Sadia, one of the best-known food brands in the Middle East.
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