The shares of UAE-based supermarket chain Spinneys opened at Dh1.53 and reached the 6-1% range after the first 10 minutes of trading on the Dubai Financial Market.
Spinneys’ final offer price had been set at the top end of the previously announced offer price range of the IPO. The company offered 900 million shares, representing 25% of the company’s total issued share capital, with retail investors being allocated 7% of the shares.
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 demand and oversubscription of a non-government-related IPO on the DFM in recent years.
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. All the shares offered in the public float are held by Al Seer Group.
Of the 24 companies listed in the UAE in the last four years, only six have been privately owned, Bloomberg found. The last of such listings was Al Ansari Financial Services PJSC’s, which raised $210 million in its 2023 IPO.
The Spinneys stock pared gains to 7.2% by 10:03 a.m. local time.
