Spinneys’ IPO raises over $375 million, market capitalization hits $1.50 billion

IPO saw an oversubscription rate of 64 times in aggregate
Spinneys’ IPO raises over $375 million, market capitalization hits $1.50 billion
The company and the selling shareholder set the offering size at 25 percent of the total share capital

Spinneys 1961 Holding, the retail supermarket operator in the UAE and Oman, has successfully concluded its initial public offering (IPO) on the Dubai Financial Market (DFM).

The final offer price of Spinneys’ shares was AED1.53 per share, at the higher end of the offer price range it announced for the IPO. This resulted in offer proceeds reaching AED1.38 billion ($375.7 million). Market capitalization at listing reached AED5.51 billion ($1.50 billion).

Remarkable demand

The Spinneys IPO witnessed very strong demand. Investors demonstrated strong interest amounting to approximately AED71 billion from local, regional and international investors. This remarkable demand led to an oversubscription rate of approximately 64 times in aggregate (excluding the cornerstone tranche). This represents the highest level of demand and oversubscription for a non-government IPO on the DFM in recent years.

Moreover, both the qualified investor offering and the UAE retail offering experienced substantial oversubscription, underscoring the widespread investor appetite for Spinneys’ shares. Notably, the company and the selling shareholder set the offering size at 900,000,000 shares or 25 percent of the total share capital.

Read: DFM sees 171 percent increase in Q1 net profits to $26.03 million

Attractive investment proposition

Sunil Kumar, CEO of Spinneys, expressed satisfaction with the overwhelming response to the IPO. He also highlighted the attractiveness of Spinneys’ investment proposition. Moreover, he emphasized Spinneys’ position as a leading premium fresh food retailer in the UAE. Kumar attributed Spinneys’ success to store network expansion, growing online penetration, and a vertically integrated supply chain. “Spinneys is a brand with enormous ambition and a presence in the vibrant and fast-growing markets in the GCC,” he added. Therefore, the company poisoned itself to capitalize on the very positive macroeconomic tailwinds that this region is experiencing, Kumar explained.

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