Saudi Arabia’s Savola Group said it plans to list one of its subsidiaries, Panda Retail Company.

The move is part of the company’s aim to create additional value for shareholders, the Saudi-listed company said in a statement on Wednesday. 

“Panda has demonstrated a healthy recovery in profitability. Its future growth strategy centers on sustaining this positive momentum by expanding its footprint and bolstering it with digital initiatives,” the statement added.

Panda owns and manages over 185 retail stores across Saudi Arabia and serves over 90 million customers annually in Saudi Arabia and Egypt.  

Earlier, the company said it intends to distribute its 34.52% shareholding in regional dairy giant Almarai to eligible Savola shareholders.

The distribution will follow a 6 billion riyals ($1.6 billion) rights issue that will help strengthen the company’s position, including paying off debt.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)