DFM to allow trading of non-listed shares + Spinneys prices IPO at top of range

It’s a busy morning on Planet Finance, so let’s jump right in:

Supermarket chain Spinneys Dubai is on track to raise AED 1.38 bn (USD 380 mn) in its Dubai Financial Market IPOafter pricing the offering AED 1.53 per share — the top the range on which bankers had guided thanks to heavy investor interest, it said in astatement (pdf).

Shares will start trading on the DFM on Thursday, 9 May, under the ticker SPINNEYS, the statement reads.

The local angle: Spinneys is coming to Saudi this year and aims to open at least four new stores every year. The company had been hoping to line up Saudi investors for the IPO, but it’s unclear who wrote tickets in the end. EIIC and Franklin Templeton each placed orders as cornerstone investors.

Advisors: Our friends at HSBC Middle East are joint global coordinators alongside EmiratesNBD Capital and Merrill Lynch. Our friends at EFG Hermes are joint bookrunners, while Rothschild Middle East is an independent financial advisor. Emirates NBD Capital is also acting as listing advisor, while Emirates NBD Bank is lead receiving bank. Other receiving banks include our friends at FAB as well as MBank and Commercial Bank of Dubai.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

DFM TO TRADE PRIVATE-MARKET SHARES

The Dubai Financial Market is venturing into private capital markets with the launch of Arena, a platform that it said will allow family businesses and SMEs to access a range of asset classes, including debt and equity, the exchange said in a press release (pdf).

Arena will provide customized pre-IPO listing options where private companies can limit who can access their shares to institutional investors, employees-only, or family and founding members, according to the statement. Companies wanting to raise around AED 35 mn could use the platform as a cheaper alternative to traditional funding routes.

ALSO…

#1- PIF-backed Aston Martin’s results dipped this quarter as it ramped down its Vantage model, Bloomberg reports. Its revenues fell 10% y-o-y in 1Q 2024, selling 945 cars — a 26% y-o-y decrease, it said in an earnings release (pdf).

#2- Shares of cruise line operator Viking Holdings rose as the company made its NYSEdebut yesterday. Shares rose 9% in the first day of trading as Viking wrapped up its USD 1.54 bn offering, the second-largest in the US this year after Arc’teryx owner Amer Sports went public in February.

#2- Google has fired some 200 “core” employees and moving some jobs to India and Mexico, CNBC reports in an exclusive.

MARKETS THIS MORNING-

Asian shares are mixed this morning, with the Nikkei and Kospi in the red while Hong Kong’s Hang Seng is flat and the ASX 200 is up 0.3%. The Shanghai Stock Exchange remains closed as China observes an extended labor day holiday.

Traders seem to be happy with Jay Powell’s comments that interest rates would stay put for a while longer: Dow, Nasdaq, and S&P futures are all up 0.4% or more in overnight trading.

European stocks look set for a softer open, with futures for most of the continent’s major benchmarks trending lower at dispatch time this morning.

THE CLOSING BELL: TADAWUL-

The TASI fell 0.4% at yesterday’s close on turnover of SAR 6 bn. The index is up 3.2% YTD.

In the green: SPM (+6.6%), Salama Coop. Ins. xx (+5.1%) and Thimar Development (+4.5%).

In the red: AlBaha (-7.1%), Jadwa Reit (-3.3%) and Solutions by stc (-3.1%).

THE CLOSING BELL: NOMU-

The NomuC closed up 0.1% yesterday on turnover of SAR 27.2 mn. The index is up 7.5% YTD.

In the green: Edarat (+6.1%), Rawasi (+5.1%) and Burgerizzr (+5%).

In the red: Future Care (-9%), Mayar Holding (-7.5%) and Al Babtain Food (-5.3%)

CORPORATE ACTIONS-

#1- Shareholders of Saudi Investment Bank (Saib) have approved the board’s recommendation of a 25% capital hike to SAR 12.5 bn from SAR 10 bn, it said ina filing to Tadawul (pdf). The capital increase will be executed through the capitalization of 2.5 bn from the statutory reserve. The move comes under Saib’s efforts to expand its operations and achieve higher growth rates, it said.

#2- Shareholders of Solutions are set to vote on a recommended dividend payout of SAR 714 mn at SAR 6 apiece for FY 2023 on Wednesday, 29 May, the tech subsidiary of telecom giant stc said in a disclosure to Tadawul.

#3- Albilad Saudi Sovereign Sukuk ETF set a dividend of SAR 402.5k at 0.04 a unit, it said in a disclosure to Tadawul. Dividends will be disbursed on Sunday, 5 May.