Spinneys IPO Attract Orders Worth Over $19 Billion

The Initial Public Offering from Spinneys, an operator of premium grocery retail supermarkets under the Spinneys, Waitrose and Al Fair brands in the UAE and Oman, saw significant demand from international and regional institutional investors, as well as retail investors in the UAE, attracting around $19 billion in orders.

The IPO 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.

Spinneys plans to launch its operations in Saudi Arabia later this year with four stores expected to be operational in Riyadh and Jeddah by year-end and it will also continue to open new stores in the UAE, by launching “The Kitchen, by Spinneys” dining concept as well as rolling out its new hyperlocal ecommerce offering, “Spinneys Swift.”

In response to high levels of demand, the UAE retail offering was increased from 5% to 7% of the total offer shares. The final offer price was set at $0.54 per share, at the top end of the offer price range, raising around $375 million and implying a market capitalisation of $1.5 billion on admission to trading.

Robust and Dynamic Market

Spinney’s successful listing, the second on Dubai Financial Market (DFM) in 2024, highlighted the robustness and dynamism of Dubai’s capital market. This milestone achievement reaffirmed 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.

Spinneys Chairman Ali Saeed Juma Al Bwardy rang the DFM market opening bell on Thursday to celebrate the listing, in the presence of DFM Chairman Helal Al Marri, and CEO of DFM and Nasdaq Dubai Hamed Ali, and others.

Speaking on the occasion, Al Bwardy said that having begun their story in Bur Dubai in the early 1960s, they were proud to celebrate 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 said.

Spinneys CEO Sunil Kumar said that the strong support for the IPO, which saw the highest level of demand for a non-government-related IPO on the DFM in the last 10 years, reflects what they believed was 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 capitalising 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.

Helal Al Marri said that this listing underscores DFM’s commitment to providing a platform for diverse investment opportunities, fostering economic growth, and aligning with the visionary goals of Dubai’s leadership.

“The strong investor interest reaffirms Dubai’s status as a global economic powerhouse, showcasing the Emirate’s resilience and growing appeal to international investors. This milestone reflects the collective efforts and strategic direction guided by H H Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of the Emirate of Dubai, the Deputy Prime Minister and Minister of Finance of the UAE, to further propel Dubai’s journey towards becoming a premier global capital hub,” he said.

Hamed Ali said that this achievement holds a dual significance as the first non-government entity to be listed in DFM in 2024, coupled with the positive market response that underscores the growing confidence in Dubai’s capital markets, he noted.

“Spinneys’ successful debut listing reaffirms our position as the go-to marketplace for private companies seeking growth opportunities and stands as a testament to our commitment to fostering economic expansion and diversification, laying the groundwork for a dynamic year ahead in Dubai’s capital markets,” he added.