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Olam's OFI IPO to unlock huge shareholder value: UOB KH

Khairani Afifi Noordin
Khairani Afifi Noordin3/18/2022 3:26 PM GMT+08  • 3 min read
Olam's OFI IPO to unlock huge shareholder value: UOB KH
The IPO of OFI is expected to be valued at around $8 billion to $14 billion.
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Armed with strong profitability, the initial public offering (IPO) of Olam Group's subsidiary Olam Food Ingredients (OFI) is expected to be valued at around $8 billion to $14 billion, says UOB Kay Hian Research analyst Llelleythan Tan in an unrated report.

This is after excluding $5 billion of net debt, assuming a 12x-17x 2021 EV/EBITDA multiple based on global peers’ average. These estimates are lower than the reported valuation of GBP13 billion published by Bloomberg on Feb 23, Tan notes.

OFI is slated to list in the second quarter of 2022, with a concurrent primary listing in London and secondary listing in Singapore.

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