• Processed-food maker said to eye London, Dubai for listing
  • Sadia Halal unit may be valued at about $5 billion in sale

BRF SA, Brazil’s biggest processed-food maker, is working with Morgan Stanley and Bank of America Corp. on a planned initial public offering of its Sadia Halal unit, according to people familiar with the matter.

BRF is considering listing venues including London and Dubai, said the people, who asked not to be identified because the details aren’t public. An IPO could value Sadia at about $5 billion, people familiar said in July. Representatives for BRF and Morgan Stanley declined to comment. A representative for Bank of America didn’t immediately respond to a message seeking comment.

BRF, which makes products from margarine to lasagna and is the world’s largest poultry exporter, said in July it was speaking to advisers on options to accelerate the expansion of Sadia, which makes chicken and sausages that adhere to Muslim guidelines. If it lists in the Middle East, which is Sadia’s main market, the deal could be one of the largest IPOs in the region.

The biggest IPO in the Middle East and Africa since 2015 was that of Saudi Ground Services Co., which raised 2.8 billion riyals ($747 million), data compiled by Bloomberg show. HSBC Holdings Plc is ranked top adviser on IPOs in the region.

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