Supermarket chain Spinneys debuts on DFM after successful IPO
DUBAI, May 9, 2024
Spinneys, a high-end supermarket chain with a major presence in Oman and UAE, has made its trading debut at Dubai Financial Market (DFM) in style with its shares rising as much as 10% on the opening day.
Ali Saeed Juma Al Bwardy, Chairman of Spinneys, rang the opening bell to celebrate the Dubai listing in the presence of Helal Al Marri, Chairman of DFM, and Hamed Ali, CEO of DFM and Nasdaq Dubai, alongside the Board and Management of Spinneys and other officials.
The company's IPO saw significant demand from international and regional institutional investors, as well as retail investors in the UAE, attracting around AED71 billion ($19 billion) in orders.
The Offering was oversubscribed by 64 times in aggregate (excluding the cornerstone investor), representing the highest level of demand and oversubscription for a non-government-related IPO on DFM in recent years.
In response to high levels of demand, the UAE Retail Offering was increased from 5 percent to 7 percent of the total offer shares.
The final offer price was set at AED 1.53 per share, at the top end of the offer price range, raising around AED1.38 billion ($375 million) and implying a market capitalisation of AED5.51 billion ($1.5 billion) on admission to trading. The company now trades under ticker symbol 'Spinneys.'
According to DFM, Spinney’s successful listing, the second on the Dubai bourse in 2024, highlights the robustness and dynamism of Dubai’s capital market.
This milestone achievement reaffirms DFM's commitment to attracting new listings from the private sector, boosting investor participation, and fortifying Dubai's financial sector and the UAE's economic landscape, it stated.
Juma Al Bwardy said: "Having begun our story in Bur Dubai in the early 1960s, we are incredibly proud to be celebrating this historic moment. Ours is a long-standing and much-loved brand with a strong heritage in the UAE and a commitment to quality, evolving over the decades to become one of the country’s leading premium fresh-focused food retailers."
"It is a great privilege to be listing our shares on DFM, and to be providing investors with an opportunity to be a part of our next phase of growth," he stated.
On the debut launch, Spinneys CEO Sunil Kumar said: "The very strong support for our IPO, which saw the highest level of demand for a non-government-related IPO on the DFM in the last 10 years, reflects what we believe is a truly attractive value proposition. Spinneys is a brand with enormous ambition, a presence in two of the most vibrant and fast-growing markets in the GCC, and we are already capitalizing on the very positive macroeconomic tailwinds that this region is experiencing."
"As we maintain our relentless pursuit of growth in both our core business and in new markets and formats, our purpose remains unchanged: to nourish and inspire our communities to live better lives, day-by-day," he added.-TradeArabia News Service
