Spinneys, a high-end supermarket chain, recently saw an overwhelming response to its initial public offering (IPO) in Dubai, with orders totaling approximately 71 billion dirhams ($19.3 billion) for a $375 million offering. This level of interest indicates a robust demand for a private sector listing in the United Arab Emirates, a rarity compared to the usual state-owned company listings.
The IPO was a massive hit, with the offering being 64 times oversubscribed, not counting the cornerstone tranche. Investors quickly snapped up all available shares just minutes after the offering opened last week, highlighting the strong appetite for new listings in the region.
Owned by the Al Seer Group LLC, part of the Al Bwardy family, Spinneys sold 900 million shares at 1.53 dirhams each, hitting the top of their price range. The company is now valued at about 5.51 billion dirhams, and its shares are set to begin trading in Dubai on May 9.
The successful launch of Spinneys’ IPO could encourage more privately-held companies in the UAE to consider going public. This comes as a positive sign, especially since the last family-owned business to list in the UAE was Al Ansari Financial Services PJSC last year, which had a more modest market debut.
Adding to the unique aspects of this IPO, Spinneys drew in notable cornerstone investors like Franklin Templeton, alongside Emirates International Investment Company LLC, with a combined commitment of 275 million dirhams. This is somewhat unusual for UAE listings, which typically attract local funds.
Spinneys, which opened its first store in 1961, now operates 75 supermarkets across the UAE and Oman under the Spinneys, Waitrose, and Al Fair brands. They are also eyeing expansion into Saudi Arabia later this year, aiming to tap into the Gulf’s largest economy.
The IPO was managed by a team of international financiers including Emirates NBD Capital, Bank of America Corp., and HSBC Holdings Plc as joint global coordinators, with EFG Hermes acting as joint bookrunner. Rothschild & Co served as the independent financial adviser.