(Source: Valor Intenational)

Major Investment Deal Sets Stage for 2027 Riyadh Stock Exchange Debut

Brazilian food producer MBRF has finalized a substantial investment agreement with Saudi Arabia’s Halal Products Development Company (HPDC) to expand their Middle Eastern joint venture, with plans for a future Riyadh listing announced Monday.

Market response proved enthusiastic, with MBRF shares surging 9.25% to 16.42 reais during late morning trading following the announcement.

Asset Contribution Spans Five Gulf Nations

A wholly owned MBRF subsidiary will inject assets valued at $2.07 billion into the venture, encompassing distribution centers alongside production facilities across Saudi Arabia, Qatar, the United Arab Emirates, Kuwait, and Oman, according to securities filings.

MBRF, recently formed through the merger of pork-poultry processor BRF with beef producer Marfrig, confirmed that HPDC—a Public Investment Fund subsidiary—will acquire a 10% stake in BRF Arabia, the joint venture’s investment vehicle.

The Saudi partner plans to increase its ownership to 30%, with contractual rights enabling expansion to 40% pending certain condition fulfillment, MBRF’s filing revealed.

Analysts View Transaction as Strategic Capital Boost

Genial analyst Igor Guedes characterized the transaction positively for MBRF, citing immediate capital infusion benefits with potential additional funding through the anticipated 2027 IPO, facilitating leverage reduction.

Bank of America echoed this sentiment, stating: “We believe the deal is positive and supports further growth of MBRF in the Middle East.” However, BoFA analysts maintained their neutral stock rating, pointing to compressed US beef margins, peak poultry-pork business margins, and elevated leverage as near-term obstacles.

Riyadh Exchange Offers Premium Valuation Opportunity

Addressing the Saudi listing strategy, MBRF controlling shareholder Marcos Molina explained during a press conference that Riyadh stock exchange trading multiples rank among the world’s highest. This mirrors rival JBS’s 2025 New York Stock Exchange listing aimed at accessing broader investor pools while reducing capital costs.

MBRF targets securing all regulatory approvals by first quarter 2026. Assuming successful progression, BRF Arabia—scheduled for rebranding as Sadia Halal upon transaction closure—expects its IPO to materialize in 2027.

Original Article:

Global Ag Media. (2025, October 28). MBRF, Saudi fund expand halal food venture. The Pig Site. https://www.thepoultrysite.com/news/2025/10/mbrf-saudi-fund-expand-halal-food-venture