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Brazilian food producer MBRF has signed an investment agreement with Saudi Arabia’s Halal Products Development Company (HPDC) to strengthen their joint venture in the Middle East, which is expected to be listed on the Riyadh stock exchange, the company said on Monday.
According to a securities filing, a wholly-owned subsidiary of MBRF will contribute assets valued at $2.07 billion to the venture.
HPDC operates as a subsidiary of the Public Investment Fund, Saudi Arabia’s sovereign wealth fund.
Under the agreement, HPDC will initially hold a 10% stake in BRF Arabia, the investment vehicle for the joint venture. MBRF stated that HPDC has plans to raise its stake to 30% and holds the option to increase it to 40% if specific conditions are met.
MBRF was created through the recent merger of food producers BRF and Marfrig. The new entity aims to expand its halal food offerings across the Middle East through its partnership with HPDC.
Shares of MBRF rose more than 4% at market open following the announcement.
Discussing the planned listing, MBRF’s controlling shareholder Marcos Molina said during a press conference that the Riyadh exchange offers some of the highest trading multiples globally, making it an attractive destination for the joint venture’s IPO.
MBRF expects to secure all necessary regulatory approvals by the first quarter of 2026.
The IPO of BRF Arabia—set to be renamed Sadia Halal upon the transaction’s closing—is projected to take place in 2027, according to the company.