UAE-based supermarket chain Spinneys has set the initial public offering (IPO) price range at Dh1.42 to Dh1.53 on the day subscriptions open. The price range values the company at Dh5.1 billion to Dh5.5 billion.
The operator of Spinneys, Waitrose and Al Fair supermarkets in the UAE and Oman, has announced it will offer up a 25% stake via an initial public offering (IPO) on the Dubai Financial Market (DFM).
The IPO will offer 900,000,000 shares, each with a nominal value of Dh0.01, representing 25% of the company’s total issued share capital.
Retail investors in the IPO have been allocated 5% or 45 million shares in the first tranche, with each subscriber “guaranteed a minimum allocation of 2,000 shares”, the company said. The subscription period will open on April 23 and end on April 29 for retail investors.
The final pricing will be determined at the end of the book-building period, which is slated for April 30, the company said in a statement, adding that shares were expected to start trading on May 9.
Spinneys operates 75 premium grocery retail supermarkets in the UAE and Oman and is expected to open its first store in Saudi Arabia in the first half of 2024. The company commands a 27% share of its target market in Dubai and a 12% share of its Dh23 billion target market in the UAE in 2022.
All shares offered in the public float are held by Al Seer Group.
The Spinneys IPO will be the second DFM listing this year, following that of Dubai’s parking operator. Parkin’s IPO was oversubscribed 165 times, attracting $71 billion in demand
