Spinneys IPO: Food retailer to list 25% of shares on DFM

Spinneys Holding, the UAE’s leading premium fresh-focused food retailer, has revealed its intention to launch an initial public offering (IPO) and list its ordinary shares on the Dubai Financial Market (DFM).

Ali Saeed Juma Al Bwardy, founder and chairman of Spinneys, said, “Having begun our story in Dubai in the early 1960s, we are proud to be taking another significant step in our journey.

“Our IPO represents an opportunity for investors to be part of our next stage of growth and we are excited to embark on a new chapter, bringing our fresh opportunity to a wider shareholder base.”

Spinneys IPO: key details

The food retailer plans to offer 900 million shares, each with a nominal value of Dhs0.01, representing 25 per cent of the company’s total issued share capital.

As the selling shareholder, Al Seer Group reserves the right to adjust the size of the offering before the end of the subscription period, subject to applicable laws and approval from the Securities and Commodities Authority (SCA) in the UAE.

The IPO will be available to UAE retail investors and other investors in two tranches – UAE retail offering (first tranche) and qualified investor offering (second tranche) for professional investors outside the US, including the UAE.

The subscription period for UAE retail investors will run from April 23-29, and for professional investors until April 30.

Shares are anticipated to be admitted for trading on DFM in May.

At the time of listing, the company’s share capital will be Dhs36,000,000 divided into 3,600,000,000 shares, each with a nominal value of Dhs0.01.

Following the IPO, Spinneys intends to pay dividends semi-annually in April and October, starting from October, for H1 2024.

The company aims to maintain a dividend payout ratio of 70 per cent of annual distributable profits after tax for fiscal year 2024 and subsequent years.