Investor anticipation surges as Spinneys gears up for its IPO, offering a 25% stake to both retail and institutional investors.
The move marks a significant development in the UAE stock market landscape, following the success of Dubai’s Parkin IPO, which saw a remarkable 33% increase in stock price since its listing.
Owned by the Albwardy family, Spinneys intends to sell a 25% stake in its Spinneys 1961 Holdings plc, totaling 900 million shares.
This IPO presents a unique opportunity as only the second offering by a family holding in the UAE, following Al Ansari Financial Services’ previous listing.
With 75 stores and a 27% market share in Dubai, Spinneys also boasts a notable 13% contribution to revenue from online sales. Financials reveal a revenue growth to Dh2.9 billion in 2023, with a 19% increase in profit to Dh254 million compared to 2022.
Analyzing the company’s total share capital of Dh36 million divided into 3,600,000,000 shares, the projected EPS is approximately Dh0.01.
Considering the global sectoral P/E of 14.5, and based on the calculated EPS of Dh0.01, the expected IPO pricing band is estimated to be around Dh0.145. (The figures provided are estimations based on the global sectoral average. Actual market valuation may vary depending on different sources and methodologies employed.)
The upcoming Spinneys IPO, along with Lulu’s listing later this year, is anticipated to set a positive precedent for other private family-owned businesses to join the IPO wave, signaling a dynamic shift in the UAE’s financial landscape.
