In a landmark move for the UAE’s retail sector, Spinneys, one of the region’s leading supermarket chains, has successfully completed its initial public offering (IPO), raising an impressive Dh1.38 billion
The IPO, which attracted significant investor interest, marks a pivotal moment in Spinneys’ growth trajectory and underscores investor confidence in the company’s future prospects. The funds raised through the IPO will be instrumental in fueling Spinneys’ expansion plans, enhancing its market presence, and investing in innovative initiatives to further elevate the customer experience.
Spinneys has confirmed that the final offer price for its shares stands at AED1.53 per share, positioned at the upper end of the previously disclosed offer price range of the IPO. This pricing structure culminates in offer proceeds amounting to approximately AED1.38 billion (around US$375 million), consequently implying a market capitalization at a listing of approximately AED5.51 billion (approximately $1.50 billion).
Exceptionally robust interest in the IPO, totaling around AED71 billion (approximately $19 billion) from local, regional, and international investors, led to an oversubscription of approximately 64 times in total (excluding the cornerstone tranche). This surge in demand and oversubscription marks the highest level observed for a non-government-related IPO on the DFM in recent memory.
Strong interest from both the UAE and the global institutional investor community led to the oversubscription of the Qualified Investor Offering by more than 68 times (excluding the cornerstone tranche). Additionally, significant demand from the local retail investor community resulted in total proceeds exceeding AED1.9 billion from the UAE Retail Offering, oversubscribed by approximately 20 times (based on the upsized tranche size).
The company and the Selling Shareholder determined the Offering size at 900,000,000 shares, representing approximately 25 percent of its total issued share capital.
Sunil Kumar, CEO of Spinneys, commented, “The extremely strong demand for our IPO, which was 64 times oversubscribed, reflects what we believe is a truly attractive offering. Spinneys has presented an opportunity for investors to participate in a rare UAE private sector listing, and in the story of a business that has evolved over the decades to become one of the country’s leading premium fresh food retailers.
Spinneys is a brand with enormous ambition, and a presence in the vibrant and fast-growing markets in the GCC, and is positioned to capitalise on the very positive macroeconomic tailwinds that this region is experiencing. Driven by the expansion of our store network, increasing online penetration and our vertically integrated supply chain, we have a strong track record of financial performance, with resilient like-for-like growth and strong margins. We are excited to embark on a new chapter, bringing a fresh opportunity to more customers as well as to a diverse local and international shareholder base.”
