Spinneys Ups Retail Share Allocation In IPO After High Demand

In a recent development that underscores the robust investor interest in the United Arab Emirates (UAE) retail market, Spinneys 1961 Holding plc has announced an adjustment to its initial public offering (IPO) on the Dubai Financial Market (DFM). The adjustment comes in response to the overwhelming demand from investors, leading to an increase in the number of shares allocated for the UAE Retail Offering.

The company disclosed that the allocation for subscribers in the First Tranche of its public offering has been raised from 45,000,000 Shares to 63,000,000 Shares. This adjustment means that 7% of the total Offer Shares are now earmarked for the UAE Retail Offering, up from the previously planned 5%. This decision was made to better accommodate the significant interest shown by First Tranche subscribers.

Despite this increase in allocation for retail investors, Spinneys has maintained the overall size of its offering at 900,000,000 Shares. This figure represents 25% of the company's total issued share capital. To facilitate this reallocation towards retail investors, the share portion designated for Professional Investors (Qualified Investor Offering), also known as Second Tranche subscribers in the UAE Prospectus, has been decreased from 855,000,000 Shares to 837,000,000 Shares. Consequently, this segment now accounts for 93% of the total Offer Shares, a slight reduction from the initial 95%.

The subscription period for this IPO concluded recently, with UAE Retail Investors finalizing their subscriptions on Monday, 29th April. Professional Investors had until Tuesday, 30th April to complete their subscription process. Following these key dates, Spinneys is poised to begin trading on the DFM starting Thursday, 9th May 2024.

This strategic move by Spinneys not only highlights the company's responsiveness to investor demand but also reflects the dynamic nature of the UAE's financial markets. By adjusting its share allocation between retail and professional investors, Spinneys is effectively balancing its investor base and setting a positive precedent for its upcoming debut on the Dubai Financial Market.

With inputs from WAM