Spinneys Debuts On Dubai Financial Market After Successful IPO

Dubai Financial Market (DFM) celebrated a significant milestone today with the successful listing of Spinneys 1961 Holding PLC, marking a historic moment as the company's Initial Public Offering (IPO) attracted a staggering AED71 billion (US$19 billion) in orders. This level of demand, oversubscribing the offering by 64 times (excluding the cornerstone investor), sets a new record for a non-government-related IPO on DFM, showcasing the robust interest from both international and regional institutional investors, alongside retail investors in the UAE.

The overwhelming response prompted an increase in the UAE Retail Offering from 5 percent to 7 percent of the total offer shares. The final offer price was established at AED 1.53 per share, positioning at the higher end of the anticipated range. This pricing strategy enabled Spinneys to raise approximately AED 1.38 billion (USD 375 million), leading to a market capitalisation of AED 5.51 billion (USD 1.50 billion) upon admission to trading under the ticker symbol "SPINNEYS".

Ali Saeed Juma Al Bwardy, Chairman of Spinneys, alongside Helal Al Marri, Chairman of DFM, and Hamed Ali, CEO of DFM and Nasdaq Dubai, commemorated this achievement by ringing the DFM market opening bell. This event not only celebrated Spinneys' listing but also underscored DFM's dedication to enhancing Dubai's financial sector and enriching the UAE's economic landscape by attracting private sector listings.

Al Bwardy expressed immense pride in Spinneys' journey from its inception in Bur Dubai during the early 1960s to becoming one of the UAE's premier fresh-focused food retailers. He highlighted the company's commitment to quality and its ambition to expand further. Sunil Kumar, CEO of Spinneys, attributed the successful IPO to the brand's attractive value proposition and its strategic positioning in fast-growing GCC markets.

Helal Al Marri emphasized that Spinneys' listing is a testament to Dubai's global economic prowess and its capacity to attract international investment. Hamed Ali remarked on the strategic importance of Spinneys' inclusion in DFM, noting it as a significant milestone for Dubai's capital markets in 2024.

Looking ahead, Spinneys plans to extend its footprint within the GCC. The company has announced its entry into the Kingdom of Saudi Arabia with four stores set to open in Riyadh and Jeddah by year-end. Additionally, Spinneys aims to enhance its presence in the UAE market through new store openings and launching innovative concepts like "The Kitchen, by Spinneys" dining experience and "Spinneys Swift" hyperlocal ecommerce service.

The first quarter of 2024 has already seen a notable 4.59% increase in the DFM General Index, with total trading value exceeding AED 25 billion. Since 2022, IPOs on DFM have raised a total value of funds amounting to AED 36.4 billion, indicating a vibrant period for Dubai's capital markets.

This listing not only marks a significant chapter in Spinneys’ history but also highlights the dynamic and growing appeal of Dubai as a leading global capital hub. With such strategic moves, DFM continues to play a pivotal role in shaping the future economic landscape of Dubai and the broader UAE.

With inputs from WAM