Saudi Coffee Chain Barn’s Advances IPO Plans Amid Market Shifts
Barn’s, the Saudi Arabian coffee chain owned by Al Amjaad Trading & Manufacturing, is moving forward with its long-anticipated initial public offering (IPO) on the Tadawul Stock Exchange. The company has secured mandates from Goldman Sachs, HSBC, and Saudi Fransi Capital to act as joint financial advisors, according to sources familiar with the matter.
The IPO, slated for the first quarter of 2026, is expected to raise up to $500 million and could value the Jeddah-based brand at approximately $2.5 billion. Proceeds from the offering will be directed toward expanding Barn’s footprint to 1,000 stores by 2030, up from the current count of 900. The company has recently launched new outlets in Dubai, Muscat, and Casablanca, with further expansion planned in Qatar and Jordan by mid-2026.
The announcement comes as Saudi Arabia’s equity markets show signs of recovery. The Tadawul Index has rebounded by 8% since June 2025, buoyed by oil prices stabilizing around $72 per barrel. However, economic headwinds persist, with the International Monetary Fund revising the kingdom’s 2025 GDP growth forecast downward to 2.1%, citing delays in fiscal reforms.
Barn’s IPO would join a mixed lineup of listings on the Saudi market this year. Shares of gym operator Sports Club Co. have gained 15% since their debut, while hospital chain Specialized Medical Co. is trading 9% below its offering price. Analysts note that consumer-facing companies with regional growth potential are attracting stronger investor interest.
“Barn’s regional dominance in the specialty coffee sector, coupled with its clear scalability, makes it an attractive candidate,” said Amal Al-Rashid, equity strategist at Riyad Capital.
In a recent interview, CEO Mohammed Alzain outlined strategic shifts aimed at sustaining post-IPO growth. The company is investing in premium at-home coffee products and AI-powered loyalty programs, which have driven a 40% year-on-year increase in app-based orders. “We’re not just a café chain; we’re building a lifestyle ecosystem,” Alzain said.
Yet the road ahead may not be without obstacles. UAE-based Caribou Coffee is preparing to enter the Saudi market in 2026, while Malaysia’s ZUS Coffee—backed by Kuwait’s Alshaya Group—plans to double its MENA footprint. Global coffee bean prices have also surged by 18% in 2025, adding pressure to profit margins amid ongoing supply chain disruptions.
Investor roadshows are expected to begin in November. As the company prepares to pitch its vision to the market, Barn’s must demonstrate that its blend of Saudi heritage and modern retail strategy can deliver sustainable long-term value.
