Spinneys Holding today announced its intention to proceed with an initial public offering (IPO). It plans to list its ordinary shares for trading on the Dubai Financial Market.
The company said that 900,000,000 shares each with a nominal value of AED0.01 will be available in the offering. This represents 25 percent of the company’s total issued share capital.
All shares to be offered are currently held by Al Seer Group, the selling shareholder.
Offer period
The subscription period will open on Tuesday, April 23 and end on Monday, April 29 for UAE retail investors. For professional investors, the window closes on Tuesday, April 30.
Shares are likely to start trading on the DFM in May 2024. The share capital of the company, as at the date of the listing, is set at AED36,000,000 divided into 3,600,000,000 shares paid-in-full.
Read: MENA IPO market soars with 48 IPOs in 2023, reaping $10.7 billion
Following the offering, and starting from the fiscal year 2024, the company intends to pay dividends in April and October of each year. The first payment is targeted for October 2024, in respect of H1 2024.
For the fiscal year 2024 and the years thereafter, the company plans to maintain a dividend pay-out ratio of 70 percent of annual distributable profits, after tax.
Ali Saeed Juma Al Bwardy, founder and chairman of Spinneys, said: “Having begun our story in Dubai in the early 1960s, we are proud to be taking another significant step in our journey. Spinneys is a long-standing brand with a strong heritage in the UAE. We have a commitment to quality, evolving over the decades to become one of the country’s leading premium fresh-focused food retailers.”
“Our IPO represents an opportunity for investors to be part of our next stage of growth. We are excited to embark on a new chapter, bringing our fresh opportunity to a wider shareholder base,” he added.
For more news on markers, click here.
