Spinneys Announces Offer Price Range and Launch of Subscription Period for IPO

Spinneys 1961 Holding plc (the “Company” or “Spinneys”), an operator of premium grocery retail supermarkets under the “Spinneys”, “Waitrose” and “Al Fair” brands in the UAE and Oman, with plans to open in the Kingdom of Saudi Arabia in 2024, today announces the price range for the sale of its shares (the “Shares”, each a “Share”) (the “Offer Price Range”) and start of the subscription period for its initial public offering (“IPO” or the “Offering”) on Dubai Financial Market (“DFM”).

Key Highlights

The Offer Price Range has been set between AED 1.42 and AED 1.53 per Share, implying a market capitalisation at time of listing of between c. AED 5.11 billion (c. US$ 1.39 billion) and c. AED 5.51 billion (c. US$ 1.50 billion).1

The Company will offer 900,000,000 shares with a nominal value of AED 0.01 each, constituting 25% of its total issued share capital. These existing shares, held by Al Seer Group LLC, will be available in the Offering. The Selling Shareholder reserves the right to adjust the Offering size before the subscription period ends, subject to regulatory approval.

Emirates International Investment Company LLC (EIIC) and Templeton Asset Management, acting on behalf of certain funds, will be cornerstone investors with a commitment of AED 275 million (US$ 75 million).

The IPO subscription period starts today, expected to close on April 29, 2024, for UAE Retail Investors and April 30, 2024, for Professional Investors. The final offer price will be determined through a book building process and announced on May 1, 2024.

Shares are anticipated to be admitted to trading on DFM on May 9, 2024.

Mr. Sunil Kumar, CEO of Spinneys, expressed enthusiasm for the strong interest in their IPO, marking a rare private sector listing in the local market. He highlighted the opportunity for investors to join the journey of a renowned brand committed to quality products and customer service. Spinneys' growth is underpinned by expanding store networks, increasing online presence, unique private label offerings, and a vertically integrated supply chain, ensuring robust profitability. Future expansion into the Saudi market, introduction of new formats, and ecommerce expansion are expected to drive further growth. Mr. Kumar looks forward to announcing the final offer price and welcoming new shareholders to contribute to Spinneys' growth.

Details of the offer price range

The price range for the Offering has been set between AED 1.42 and AED 1.53 per share. The total Offering size is therefore expected to be between AED 1,278 million (c.US$ 348 million) and AED 1,377 million (c.US$ 375 million), implying a market capitalisation at the time of listing of between c. AED 5.11 billion (c.US$ 1.39 billion) and c. AED 5.51 billion (c.US$ 1.50 billion). The final offer price is expected to be announced on Wednesday 1 May 2024.

A total of 900,000,000 Shares, each with a nominal value of AED 0.01 will be made available in the Offering, representing 25% of the Company’s total issued share capital. All Shares to be offered are existing shares held by the Selling Shareholder who reserves the right to amend the size of the Offering at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and the approval of the SCA.

Price Stabilisation

In connection with the Offering, the Company and the Selling Shareholder have appointed a stabilisation manager who may, to the extent permitted by applicable law, regulation and rule, effect stabilisation transactions on 45,000,000 Shares (the “Stabilisation Shares”), with a view to supporting the market price of the Stabilisation Shares, at a higher level than that which might otherwise prevail in the open market. The Selling Shareholder reserves the right to increase the number of Stabilisation Shares, up to a maximum of 10% of the Sale Shares, at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws.

Subscription Process

The Offering includes two tranches: the UAE Retail Offering and the Qualified Investor Offering. The subscription period runs until April 29, 2024, for UAE Retail Investors and April 30, 2024, for Professional Investors. Each subscriber in the UAE Retail Offering is guaranteed a minimum allocation of up to 2,000 Shares. Completion and Admission are expected around May 9, 2024, subject to market conditions and regulatory approvals. The Selling Shareholder's Shares are subject to a lock-up period, and details are outlined in the Prospectus.

Rothschild & Co Middle East Limited acts as Independent Financial Adviser, with Emirates NBD Capital PSC as Listing Adviser and various banks serving in other capacities. HSBC Bank Middle East Limited and its affiliates are not involved in marketing or managing the UAE Retail Offering.

News Source: Dubai Media Office