Spinneys 1961 Holding is seeking to raise up to Dh1.4 billion ($375 million) from a 25% stake sale on the Dubai Financial Market, the company said Tuesday.

The company, which operates grocery stores under the Spinneys, Waitrose and Al Fayre brands in the UAE, Oman and Saudi Arabia, has announced a share price range of between AED 1.42 and AED 1.53, meaning the company’s market value at the time of listing will be between about AED 5.11 billion (about $1.39 billion) and about AED 5.51 billion (about $1.50 billion).

The company said its revenues in 2023 rose to AED 2.87 billion, at a compound annual growth rate of 8.2% since 2019.

Highlights of the company's offering:

  • The company is selling 900 million shares in the offering.
  • The total offering size ranges between AED 1.278 billion ($348 million) and AED 1.377 billion ($375 million).
  • The final offering price will be determined through a book building process and is expected to be announced on Wednesday, May 1, 2024.
  • Each individual subscriber will receive a minimum of 2,000 shares.
  • The subscription period for individuals in the UAE begins on Tuesday, April 23 and ends on Monday, April 29, 2024.
  • The institutional subscription period begins on Tuesday, April 23, 2024 and ends on Tuesday, April 30, 2024.
  • Rothschild & Co Middle East has been appointed as independent financial advisor. Emirates NBD Capital has been appointed as listing advisor.
  • EFG Hermes UAE has been appointed as Joint Bookrunner for the IPO.
  • Emirates NBD has been appointed as the lead receiving bank. Local Al Maryah Bank, Commercial Bank of Dubai, First Abu Dhabi Bank and Weyou Bank have been appointed as the receiving banks.

Retail chain offerings rebound

The Spinneys listing will boost the region’s small but expanding food retail sector. Lulu Group, which operates major supermarkets and shopping malls, also expects to float in the first half of 2024.

In December 2022, Americana Restaurants Company, the franchisee of KFC and Pizza Hut fast-food restaurants, offered its shares in a dual listing on the Abu Dhabi and Riyadh stock exchanges.

The UAE in particular has seen a surge in listings since late 2021 on the back of high oil prices and the government’s privatization drive, with state-owned entities dominating IPO activity.

The company had initially planned to float 30% of Spinneys Dubai in an initial public offering, Bloomberg reported in September.