Spinneys Raises IPO Offering To 7% After Significant Investor Demand
In a recent announcement, Spinneys 1961 Holding plc has decided to boost the number of shares allocated to the UAE Retail Offering in its forthcoming initial public offering (IPO) on the Dubai Financial Market (DFM). This move comes after the green light from the UAE's Securities and Commodities Authority, marking a significant uptick from 45 million shares to 63 million shares. Consequently, the UAE Retail Offering will now account for 7 per cent of the total offering, up from the previously announced 5 per cent.
The adjustment in share allocation is a response to the robust demand from first tranche subscribers, underlining the attractiveness of Spinneys’ IPO to retail investors in the UAE. Despite the increase in shares for the UAE Retail Offering, the overall size of the IPO remains constant at 900 million shares. This represents 25 per cent of Spinneys' total issued share capital, indicating a solid opportunity for investors.
With the revised allocation, the Qualified Investor Offering, catering to the second tranche of subscribers, will now receive 837 million shares. This is a slight decrease from the initially planned 855 million shares, adjusting the representation from 95 per cent to 93 per cent of the total offered shares.
The IPO subscription period is on track, set to conclude on April 29 for UAE Retail Investors and April 30 for Professional Investors. The Offer Price Range is established between Dh1.42 and Dh1.53 per share, suggesting a market capitalisation at the time of listing of approximately Dh5.11 billion (c. US$ 1.39 billion) to Dh5.51 billion (c. US$ 1.50 billion).
Spinneys is poised to begin trading on the DFM by Thursday, May 9, marking a key milestone in the company’s expansion and investment strategy. Detailed information about the Offering is delineated in an Arabic-language prospectus for the UAE Retail Offering, alongside a public subscription announcement, and an English-language International Offering Memorandum for the Qualified Investor Offering. These documents, made available on April 16 and April 23, 2024, respectively, are accessible via Spinneys’ IPO dedicated website.
This strategic decision to increase the share allocation for UAE retail investors underscores Spinneys' commitment to engaging local investors in its growth story. As the company gears up for its market debut, the enhanced retail offering reflects the strong investor confidence in Spinneys’ business model and its future prospects in the UAE’s vibrant retail sector.
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