Updated April 23rd, 2024 at 12:34 IST

Spinneys Supermarket franchisee launches $375 million Dubai IPO for expansion in the Middle East

Setting an indicative price range of 1.42 dirhams to 1.53 dirhams per share, the IPO anticipates a market cap between 5.11 billion and 5.51 billion dirhams.

Reported by: Business Desk
Spinneys supermarket franchisee IPO | Image:Spinnys Supermarket
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Dubai IPO news: Spinneys supermarket franchisee, operating in the United Arab Emirates and Oman, has unveiled plans for an initial public offering (IPO) aimed at raising up to $375 million by selling a 25 per cent stake. The company, Spinneys 1961 Holding, announced on Tuesday that it would offer 900 million shares, equivalent to a quarter of its issued share capital, on the Dubai Financial Market.

Setting an indicative price range of 1.42 dirhams to 1.53 dirhams per share, the IPO anticipates a market capitalisation between 5.11 billion and 5.51 billion dirhams ($1.39 billion and $1.50 billion), according to a statement released by the company.

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CEO Sunil Kumar expressed optimism, stating, "We have got very positive feedback from all the investors internationally or regionally." He noted the commitment of two cornerstone investors, Emirates International Investment Company (EIIC) and Franklin Templeton, who have pledged to subscribe to $75 million worth of shares.

Addressing concerns about recent disruptions caused by heavy rains in the region, Kumar reassured investors that the impact on operations was minimal. Despite the challenges posed by adverse weather conditions, the company remains focused on its expansion plans.

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Spinneys currently operates 75 premium grocery retail supermarkets under various brands, including "Spinneys," "Waitrose," and "Al Fair," in Oman and the UAE. The company intends to open new stores in these markets and expand into Saudi Arabia, with plans to establish outlets in Riyadh and Jeddah.

Highlighting investor interest in the Saudi market, Kumar stated, "We do have quite a lot of Saudi investors excited about it (the IPO)... (they) believe this may be a very good opportunity for the Saudi market to get the customer base whom we are catering here....So Saudi investors are very keen to invest in this company."

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The final pricing of the IPO will be determined at the conclusion of the book-building period, scheduled for April 30. Shares are expected to commence trading on May 9.

(With Reuters inputs.)

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Published April 23rd, 2024 at 12:34 IST