Saudi Arabia's Public Investment Fund (PIF) signed a share subscription agreement to acquire 30% of grocery chain Tamimi Markets Company LLC by way of a capital increase and subscription for new shares.

The investment, subject to regulatory approvals, aims to enable Tamimi Markets to transform into a major regional chain by expanding its operations and commercial opportunities, including a potential initial public offering (IPO).

The stake acquisition aligns with PIF's strategy to enable the private sector and create Saudi national champions, the sovereign wealth fund said in a statement. However, it didn't disclose a potential value for the transaction.

The family-owned Tamimi Markets has operated for 40 years in Saudi Arabia and has over 100 stores and five distribution centres. This year, it appointed Bobby Rajendran as CEO.

PIF is building an international portfolio of investments while also investing locally in projects that will help reduce Saudi Arabia's reliance on oil. It has several strategic investments in the consumer goods and retail sector, such as online shopping platform, Halal Products Development Co., and Americana Restaurants International PLC

(Writing by Brinda Darasha; editing by Anoop Menon)