Spinneys IPO: Massive demand sees supermarket giant valued at $1.5bn as offering oversubscribed by 64 times

Spinneys 1961 Holding plc (Spinneys), an operator of premium grocery retail supermarkets under the “Spinneys”, “Waitrose” and “Al Fair” brands in the UAE and Oman, has announced the successful completion of the bookbuild and public subscription process for its initial public offering (IPO) on Dubai Financial Market (DFM).

Spinneys confirmed that the final offer price for its shares has been set at AED1.53 per share, at the top end of the previously announced offer price range of the IPO, resulting in offer proceeds of around AED1.38bn ($375m), and implying a market capitalisation at listing of AED5.51bn ($1.5bn).

Spinneys IPO values supermarket chain at $1.5bn

Extremely strong demand for shares in the IPO hit AED71bn ($19bn) from local, regional and international investors resulting in the IPO being oversubscribed by around 64 times in aggregate (excluding the cornerstone tranche).

This represents the highest level of demand and oversubscription of a non-government-related IPO on the DFM in recent years.

Strong demand from the UAE and global institutional investor community with the Qualified Investor Offering being oversubscribed more than 68 times (excluding the cornerstone tranche); and from the local retail investor community with total proceeds raised from the UAE Retail Offering in excess of AED1.9bn and oversubscribed around 20 times (on the upsized tranche size).

Strong investor appetite is reflective of the attractiveness of Spinneys’ investment proposition, with the IPO representing an opportunity for investors to be a part of the Company’s growth, in the GCC’s attractive and fast-growing markets.

The company and the Selling Shareholder set the Offering size at 900,000,000 shares, equivalent to around 25 per cent of its total issued share capital.

Sunil Kumar, CEO of Spinneys, said: “The extremely strong demand for our IPO, which was 64 times oversubscribed, reflects what we believe is a truly attractive offering.

“Spinneys has presented an opportunity for investors to participate in a rare UAE private sector listing, and in the story of a business that has evolved over the decades to become one of the country’s leading premium fresh food retailers.

“Spinneys is a brand with enormous ambition, and a presence in the vibrant and fast-growing markets in the GCC, and is positioned to capitalise on the very positive macroeconomic tailwinds that this region is experiencing.

“Driven by the expansion of our store network, increasing online penetration and our vertically integrated supply chain, we have a strong track record of financial performance, with resilient like-for-like growth and strong margins.

“We are excited to embark on a new chapter, bringing a fresh opportunity to more customers as well as to a diverse local and international shareholder base.”

The completion of the Offering and Admission is currently expected to take place on May 9,2024, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of admission to listing and trading on DFM.