UAE supermarket operator Spinneys has raised Dh1.38 billion ($375 million) from its initial public offering (IPO) on the Dubai Financial Market (DFM), achieving a market capitalisation at listing of Dh5.51 billion ($1.50 billion).
Spinneys’ final offer price for its shares has been set at Dh1.53 per share, at the top end of the previously announced offer price range of the IPO.
The IPO saw strong demand for its shares from local, regional and international investors, resulting in the initial public offering being oversubscribed by about 64 times in aggregate (which excludes the cornerstone tranche). This marked the highest level of demand and oversubscription of a non-government-related IPO on the DFM in recent years.
“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,” said Sunil Kumar, CEO of Spinneys.
“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.”
Spinneys announced in April its intention to offer up a 25% stake via an IPO on the Dubai stock exchange.
The subscription period closed on April, 29, for UAE retail investors, and on April, 30, for professional investors. Spinneys will commence trading on the DFM on May 9, 2024.