UAE – Mubasher: Spinneys 1961 Holding set the price range for its initial public offering (IPO) on the Dubai Financial Market (DFM) between AED 1.42 and AED 1.53 per Share.

The IPO will imply a market cap at the time of listing of between nearly AED 5.11 billion ($1.39 billion) and around AED 5.51 billion ($1.50 billion), according to a press release.

The offering will include 900 million shares with a nominal value of AED 0.01, each.  It accounts for 25% of the company’s total issued share capital.

Al Seer Group, the selling shareholder has the right to amend the size of the offering at any time before the end of the subscription period, subject to the approval of the Securities & Commodities Authority (SCA).

Meanwhile, Emirates International Investment Company LLC (EIIC), Templeton Asset Management, and Franklin Templeton Investments will be cornerstone investors in the IPO with a total commitment of AED 275 million ($75 million).

The IPO subscription period is expected to close on 29 April 2024 for UAE retail investors and on 30 April for professional investors.

The final offer price will be determined through a book-building process and is projected to be announced on 1 May, while the admission of shares to trading on DFM is expected to take place on 9 May. 

Spinneys is an operator of premium grocery retail supermarkets in the UAE and Oman, with plans to open in Saudi Arabia in 2024.

Sunil Kumar, CEO of Spinneys, commented: “We have seen very strong interest in our IPO since announcing our intention to float, and we are delighted to be opening subscriptions to investors in the UAE and international markets.”

Kumar added: “Our future growth is expected to be further supported by our planned entry into the highly attractive Saudi market, as well as the introduction of new formats and the expansion of our e-commerce business. We look forward to announcing the final offer price next week and, in due course, welcoming new shareholders to be a part of our growth story.”