Spinneys, the retail operator in the UAE, Oman and Saudi Arabia with the group’s first store scheduled to open in 2024, has announced the successful completion of the book-building process for its initial public offering on the Dubai Financial Market.

Spinneys said in a statement that the final offering price of the company’s shares was set at AED 1.53 per share, at the top end of the previously announced price range, and accordingly, the proceeds from the offering amounted to approximately AED 1.38 billion (about $375 million), implying that the company’s market value upon listing is approximately AED 5.51 billion (about $1.50 billion).

The huge demand for the offering shares worth approximately AED 71 billion (approximately $19 billion) from local, regional and international investors resulted in an oversubscription of approximately 64 times for all tranches combined (excluding the anchor investor tranche), the highest level of demand and oversubscription for non-government IPOs on the Dubai Financial Market in recent years.

Spinneys shares are expected to start trading on the Dubai Financial Market on Thursday, May 9, 2024.

Final Offering Price Details

  • The final offer price for Spinneys shares has been set at AED 1.53 per share, at the top end of the previously announced price range, which will raise approximately AED 1.38 billion (approximately $375 million) in proceeds from the offering. The company and the selling shareholder have maintained the offering size at 900 million shares, equivalent to 25% of the company’s total issued share capital.
  • The offering witnessed significant demand from local, regional and international investors as well as from the segment of individual investors in the UAE, with total demand for the offering shares amounting to approximately AED 71 billion (equivalent to approximately USD 19 billion), thus the subscription surplus amounted to approximately 64 times for all segments combined (excluding the segment of major investors).
  • Spinneys believes the final offer price provides a compelling value proposition to investors as one of the leading grocery retailers in the UAE, well positioned to continue growing in attractive markets across the GCC.