Spinneys increases UAE retail offering after high demand

Supermarket operator Spinneys has increased the size of its UAE retail offering by 40 percent on the Dubai Financial Market following high investor demand.

The retail allocation has been increased from 45 million to 63 million shares, now comprising seven percent of the total shares offered, compared to five percent earlier.

However, the total size of the IPO remains unchanged at 900 million shares, representing 25 percent of the company’s issued share capital.

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The number of shares allocated to professional investors has been reduced from 855 million to 837 million, 93 percent of the total offer shares, compared to 95 percent earlier.

The initial public offering (IPO) subscription period will remain unchanged and close on April 29 for UAE retail investors and April 30 for professional investors.

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Spinneys last week said it would have a market capitalisation of between AED5.11 billion and AED5.51 billion ($1.39 billion-$1.5 billion) after the IPO price range was set between AED 1.42 and AED 1.53 per share.

The final offer price will be determined by May 1 through a book-building process.

Shares in the company, which operates 75 supermarkets under the Spinneys, Waitrose and Al Fair brands in the UAE and Oman, are expected to begin trading on the DFM on May 9.

Spinneys’ revenue grew to AED2.9 billion ($790 million) in 2023, at a compound annual growth rate of 8.2 percent from 2019. 

Profit for the year 2023 stood at AED254 million, up nearly a fifth on 2022.