Spinneys IPO could raise as much as AED 1.38 bn

Spinneys snags anchor investors for its IPO: Supermarket chain Spinneys signed agreements with the Emirates International Investment Company and Franklin Templeton to become cornerstone investors in its IPO, it said in a statement (pdf) yesterday. The two investors committed to purchasing AED 275 mn worth of shares in the offering.

ICYMI- The company plans to offer a total of 900 mn of its shares — good for a 25% stake — on the Dubai Financial Market (DFM), with shares expected to begin trading on 9 May. The IPO will be among the first by a family-owned business in the UAE.

Offering could fetch more than AED 1 bn: The company has set an indicative price range of AED 1.42-1.53 per share, valuing the company at up to AED 5.51 bn. The share sale could see Spinneys raise as much as AED 1.38 bn. The final share price will be announced next Wednesday, 1 May.

Saudi investors are also eyeing the offering, Spinneys CEO Sunil Kumar told Reuters, without disclosing whether any investors from the Kingdom have bought into the IPO. Spinneys plans to inaugurate its first store in Saudi Arabia in 1H 2024 to fuel growth, and open another three by the end of the year, Kumar previously told Bloomberg.
Retail investors have until next Monday, 29 April to subscribe, while the subscription period for institutional investors wraps on Tuesday, 30 April.

ADVISORS- Our friends at HSBC Middle East are joint global coordinators alongside Emirates NBD Capital and Merrill Lynch. Our friends at EFG Hermes are joint bookrunners, while Rothschild Middle East is 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.