SINGAPORE – Olam Group has picked banks to lead a planned Singapore listing of its agribusiness unit that could raise as much as US$1 billion (S$1.34 billion), people familiar with the matter said.

The company selected Citigroup, DBS Group Holdings, HSBC Holdings and Morgan Stanley to arrange the planned initial public offering (IPO) of Olam Agri Holdings, according to the people. It is aiming to complete the share sale later this year, the people said.

The deliberations are ongoing and details of the listing could change, the sources said. A representative for Olam said the company continues to focus on executing its reorganisation plan and will make a public announcement about any material developments. Spokesmen for the banks declined to comment.

Olam Group shares jumped as much as 3.4 per cent on Friday, touching their highest intraday level in nearly six months, according to data compiled by Bloomberg. It has a market value of about US$4.3 billion.

The group said in December that it completed the sale of a 35 per cent stake in Olam Agri to state-owned Saudi Agricultural and Livestock Investment Company, a subsidiary of the oil-rich country’s Public Investment Fund. The deal valued the business at about US$3.5 billion.

Olam Agri sells grains and seeds and makes everything from edible oils to pasta, according to its website. It has more than 9,000 employees and operations in more than 30 countries. The business is one of Olam Group’s main operating units, formed in a reorganisation announced in early 2020.

The group delayed a planned London IPO last year for another unit, Olam Food Ingredients, citing the war in Ukraine. BLOOMBERG