Spinneys sets IPO price range, to make DFM debut on May 9

Supermarket chain Spinneys’ aims to raise upto Dhs1.38bn($375m) from its initial public offering in the UAE as it will list a 25 per cent stake on the Dubai Financial Market (DFM), it disclosed on Tuesday.

The indicative price range was set between Dhs1.42  and Dhs1.53, setting the firm’s market capitalisation between Dhs5.11-5.51bn ($1.39-1.50bn).

Spinneys 1961 Holding will offer 900 million shares, or 25 per cent of its issued share capital, on the DFM.

The final pricing will be determined at the end of the book-building period, which is slated for April 30, it said in a statement, adding shares were expected to start trading on May 9.

The supermarket chain operates 75 stores in the UAE and Oman and is poised to grow its chain in Saudi Arabia.

Emirates NBD has called the IPO a “strong value proposition with differentiated offering, quality, convenience, and strong brand recognition.”

Spinneys IPO

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.

Following the IPO, Spinneys intends to pay dividends semi-annually in April and October, starting from October, for H1 2024, it had said in an earlier statement.

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.