Spinneys Announces IPO Price Range, Eyes Market Cap Of Up To AED5.51 Billion

Spinneys, a leading supermarket chain, has officially launched its Initial Public Offering (IPO) on the Dubai Financial Market (DFM), marking a significant milestone in its corporate journey. The company has announced an offer price range of AED1.42 to AED1.53 per share, which translates to a market capitalisation of approximately AED5.11 billion (c. US$1.39 billion) to AED5.51 billion (c. US$1.50 billion) at the time of listing.

The offering comprises 900,000,000 shares, each with a nominal value of AED0.01, accounting for 25% of Spinneys' total issued share capital. These shares are currently held by Al Seer Group LLC, the selling shareholder, which retains the flexibility to adjust the offering size before the subscription period concludes, in line with regulatory approvals and applicable laws.

Emirates International Investment Company LLC (EIIC) and Templeton Asset Management and Franklin Templeton Investments have been named as cornerstone investors for the IPO, committing a total of AED275 million ($75 million). The subscription period for the IPO commenced today and is slated to end on 29th April 2024 for UAE Retail Investors and on 30th April 2024 for Professional Investors. The final offer price will be established through a book-building process and is anticipated to be disclosed on 1st May 2024.

Admission of shares to trading on the DFM is scheduled for 9th May 2024. Sunil Kumar, CEO of Spinneys, expressed enthusiasm about the strong interest in the IPO from both UAE and international investors. He highlighted Spinneys' robust growth trajectory, underpinned by the expansion of its store network, enhanced online presence, unique private label offerings, and an efficient supply chain.

Kumar also outlined future growth plans which include entering the Saudi market, introducing new store formats, and expanding the e-commerce business. He conveyed optimism about revealing the final offer price shortly and welcoming new shareholders to contribute to Spinneys' ongoing success story.

With inputs from WAM