Dubai Financial Market celebrated the successful listing of Spinneys 1961 Holding PLC, an operator of premium grocery retail supermarkets in the UAE and Oman. The company, which plans to expand into Saudi Arabia in 2024, saw immense demand from international and regional institutional investors, as well as retail investors in the UAE, with orders totaling around Dh71 billion (USD 19 billion).
The IPO of Spinneys was oversubscribed by 64 times, excluding the cornerstone investor, marking the highest level of demand for a non-government-related IPO on DFM in recent years. The UAE Retail Offering was increased from 5 per cent to 7 per cent of the total offer shares in response to the high demand. The final offer price was set at Dh1.53 per share, raising around Dh1.38 billion (USD 375 million) and implying a market capitalization of Dh5.51 billion (USD 1.50 billion) on admission to trading, with the company now trading under the ticker symbol “SPINNEYS”.
Ali Saeed Juma Al Bwardy, Chairman of Spinneys, rang the DFM market opening bell to celebrate the listing, expressing pride in the company’s long-standing heritage and commitment to quality. The CEO of Spinneys, Sunil Kumar, highlighted the strong support for their IPO and the attractive value proposition that the company offers. The DFM General Index experienced a 4.59 per cent increase in the first quarter of 2024, with a total trading value exceeding Dh25 billion and funds raised through IPOs reaching Dh36.4 billion since 2022.
As Spinneys expands its reach and continues to grow, investors have the opportunity to be part of the company’s next phase of development. With a strong presence in the market and a focus on premium fresh-focused food retail, Spinneys has become one of the leading brands in the UAE with a loyal customer base. The successful IPO and listing on DFM is a significant milestone for the company and showcases the confidence that investors have in its potential for growth and profitability. The positive response to Spinneys’ IPO is a testament to the company’s solid reputation and promising future prospects in the retail sector.
The listing of Spinneys on DFM presents an exciting opportunity for investors to be part of a well-established brand with a solid track record of success. With plans for further expansion and entry into new markets, Spinneys is poised for continued growth and success in the retail industry. The strong support and demand for the IPO reflect the confidence that investors have in the company’s vision and leadership, signaling a bright future ahead for Spinneys and its stakeholders. As Spinneys embarks on its next phase of growth, the listing on DFM sets the stage for a new chapter in the company’s journey towards delivering quality products and services to customers in the region.
