Dubai Supermarket Chain Sets Stage for Shareholder Debut

Dubai-based Spinneys, a well-recognized supermarket chain, has announced the price range for its initial public offering (IPO). The company is seeking to raise up to $375 million by selling a 25% stake in the business.

The indicative price per share has been set between 1.42 dirhams and 1.53 dirhams, translating to a potential market capitalization of AED 5.11 billion (roughly $1.39 billion) to AED 5.51 billion (approximately $1.50 billion) upon listing. The final offer price will be determined through a book building process, with an announcement expected on May 1, 2024.

Spinneys 1961 Holding plc, the company behind the IPO, will offer 900 million shares, representing a quarter of its issued share capital, on the Dubai Financial Market. This offering has attracted significant interest from cornerstone investors, with Emirates International Investment Company (EIIC) and Templeton Asset Management, on behalf of certain funds, committing a combined AED 275 million ($75 million) to the IPO. These cornerstone investors will be subject to a 90-day lock-up period after the listing.

The subscription period for the IPO opened on April 23, 2024, and will close on April 29 for UAE retail investors. International professional investors will have an additional day, with their subscription window ending on April 30.

Spinneys, a familiar name in the UAE and Oman, operates a network of supermarkets offering a wide range of food and household products. The company's decision to go public reflects a growing trend of regional businesses seeking to tap into capital markets for further expansion and development. The proceeds from the IPO are expected to be used for debt repayment, working capital requirements, and potential store openings.

Analysts suggest that Spinneys' IPO could be a positive sign for the Dubai Financial Market, attracting further investment and boosting overall market activity. The success of the offering will likely be influenced by investor confidence in the region's economic outlook and the future prospects of the grocery retail sector.

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