Spinneys targets market cap of $1.5bn on Dubai listing

Spinneys

Supermarket operator Spinneys will have a market capitalisation of between AED5.11 billion to AED5.51 billion ($1.39 billion-$1.5 billion) after its initial public offering (IPO) price range was set between AED 1.42 and AED 1.53 per share.

The total offering size is expected to be between AED1.3 billion and AED 1.4 billion, the company said.

Spinneys last week announced plans to sell 25 percent of its business in an IPO on the Dubai Financial Market.

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The retail subscription starts on Tuesday and closes on April 29. The subscription period for professional investors runs until April 30.

“We have seen very strong interest in our IPO since announcing our intention to float,” Sunil Kumar, CEO of Spinney, said in a statement.

He said the company’s future growth is expected to be further supported by Spinney’s planned entry into the Saudi market, as well as the introduction of new formats and the expansion of its e-commerce business.

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A total of 900 million shares, each with a nominal value of AED 0.01, will be made available in the offering, representing a quarter of the retailer’s total issued share capital.

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

Shares are expected to begin trading in Dubai on May 9.  

Spinneys is betting big on strong sales of its private-label products as it prepares to go public next month, CEO Sunil Kumar told AGBI last week.

Private-label sales accounted for 42 percent of Spinneys’ revenue, slightly above the share of global peers, he said.

In 2023 Spinneys reported sales of over 7,200 stock items from its own and Waitrose’s brands. 

Moreover, Kumar said that the company’s “integrated, solid supply chain” – its sourcing capability, production unit, logistics system and freight forwarding – guards against potential disruptions, such as those caused by the Red Sea crisis.