Spinneys debuts on DFM after successful IPO, shares move up

Dubai Financial Market (DFM) on Thursday welcomed the successful listing of Spinneys 1961 Holding. The company’s IPO saw significant demand from international and regional institutional investors, as well as retail investors in the UAE, attracting around Dhs71 billion ($19 billion) in orders.

The offering was oversubscribed by 64 times in aggregate (excluding the cornerstone investor), representing the highest level of demand and oversubscription for a non-government-related IPO on DFM in recent years. In response to high levels of demand, the UAE Retail Offering was increased from 5 per cent to 7 per cent of the total offer shares.

The company’s shares recorded a significant jump over the successfull listing on Thursday.

The final offer price was set at Dhs1.53 per share, at the top end of the offer price range, raising around Dhs1.38 billion ($375 million) and implying a market capitalisation of Dhs5.51 billion ($1.50 billion) on admission to trading. The company now trades under ticker symbol “SPINNEYS”.

Spinney’s successful listing, the second on DFM in 2024, highlights the robustness and dynamism of Dubai’s capital market. This milestone achievement reaffirms DFM’s commitment to attracting new listings from the private sector, boosting investor participation, and fortifying Dubai’s financial sector and the UAE’s economic landscape.

Ali Saeed Juma Al Bwardy, Chairman of Spinneys, rang the DFM market opening bell to celebrate the listing, in the presence of Helal Al Marri, Chairman of DFM, and Hamed Ali, CEO of DFM and Nasdaq Dubai, alongside the Board and Management of Spinneys and other officials.

Ali Saeed Juma Al Bwardy, Chairman of Spinneys, commented, “Having begun our story in Bur Dubai in the early 1960s, we are incredibly proud to be celebrating this historic moment. Ours is a long-standing and much-loved brand with a strong heritage in the UAE and a commitment to quality, evolving over the decades to become one of the country’s leading premium fresh-focused food retailers. It is a great privilege to be listing our shares on DFM, and to be providing investors with an opportunity to be a part of our next phase of growth.”

Sunil Kumar, CEO of Spinneys, said, “The very strong support for our IPO, which saw the highest level of demand for a non-government-related IPO on the DFM in the last 10 years, reflects what we believe is a truly attractive value proposition. Spinneys is a brand with enormous ambition, a presence in two of the most vibrant and fast-growing markets in the GCC, and we are already capitalizing on the very positive macroeconomic tailwinds that this region is experiencing. As we maintain our relentless pursuit of growth in both our core business and in new markets and formats, our purpose remains unchanged: to nourish and inspire our communities to live better lives, day-by-day.”

Helal Al Marri said, “Today marks a momentous occasion as Spinneys joins the Dubai Financial Market. This listing underscores DFM’s commitment to providing a platform for diverse investment opportunities, fostering economic growth, and aligning with the visionary goals of Dubai’s leadership. As we witness strong investor interest, it reaffirms Dubai’s status as a global economic powerhouse, showcasing the Emirate’s resilience and growing appeal to international investors.

This milestone reflects the collective efforts and strategic direction guided by H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, to further propel Dubai’s journey towards becoming a premier global capital hub.”

Hamed Ali said, “Welcoming Spinneys to the Dubai Financial Market marks a strategic milestone, signifying the inclusion of another robust equity into the DFM marketplace. Additionally, this achievement holds a dual significance as the first non-government entity to be listed in DFM in 2024, coupled with the positive market response that underscores the growing confidence in Dubai’s capital markets. Spinneys’ successful debut listing reaffirms our position as the go-to marketplace for private companies seeking growth opportunities and stands as a testament to our commitment to fostering economic expansion and diversification, laying the groundwork for a dynamic year ahead in Dubai’s capital markets.”

The success of Spinneys’ offering underscores the attractiveness of its value proposition as one of the UAE’s leading premium fresh-focused food retailers, positioned to continue to grow in the GCC’s attractive and fast-growing markets. In 2024, the Company will open stores in the Kingdom of Saudi Arabia for the first time, with four expected to be operational in Riyadh and Jeddah by year-end. Spinneys will also continue to open new stores in its domestic market of the UAE, and will be launching “The Kitchen, by Spinneys” dining concept as well as rolling out its new hyperlocal ecommerce offering, “Spinneys Swift”.

As of the first quarter of 2024, the DFM General Index has experienced a notable 4.59% increase, contributing to a total trading value over Dhs25 billion. Furthermore, total value of funds raised through IPOs on the DFM reached Dhs36.4 billion since 2022.