JEDDAH: Saudi Arabia’s Al-Watania Poultry, one of the largest producers of chickens in the Middle East, has selected HSBC’s Saudi Arabian unit as the financial adviser for its planned stock market flotation, sources aware of the matter said.

The bank was chosen a few weeks ago to advise the firm on a Saudi bourse listing, according to two banking sources.

Sources told Reuters in April that banks had been asked to pitch for the role and that a decision would follow. It had been expected by the end of May but was not made until after the breaks for the Eid festival and the summer holiday.

Al-Watania could not be reached for comment.

Based in the Qassim region in the center of the Kingdom, Al-Watania produces 1 million eggs and 575,000 chickens per day which are sold in Saudi and six other countries in the region, according to its website.

Food firms in the Kingdom are attracting significant interest from investors, who see the sector as a way to tap into the growing wealth of a predominantly young local population.

Saudi poultry firms have been expanding their production in recent years but were still only expected to meet around 46 percent of the Kingdom’s demand in 2015, according to the US Department of Agriculture.

This is despite the Saudi government targeting self-sufficiency in poultry production, with firms assisted by state support including subsidies for animal feed and rebates on the purchase of poultry equipment, the agency added.