Spinneys Set to List on Dubai Financial Market

Spinneys Holding (‘Spinneys’ or ‘the company’) has revealed its intention to launch an initial public offering (IPO) and list its ordinary shares on the Dubai Financial Market (DFM). 

The company disclosed that it will offer 900,000,000 shares, each valued at AED0.01, representing 25% of its total issued share capital. These shares, held by Al Seer Group LLC, will be made available in the Offering. 

The IPO will cater to UAE Retail Investors and other investors in two tranches: the UAE Retail Offering and the Qualified Investor Offering. The subscription period opens on April 23, 2024, for retail investors and ends on April 29, 2024, while professional investors have until April 30, 2024. 

Spinneys anticipates the admission of shares to DFM trading to occur in May 2024. At the time of listing, the company’s share capital is set at AED36,000,000, divided into 3,600,000,000 shares with a nominal value of AED0.01 each. 

Post-IPO, starting from fiscal year 2024, Spinneys plans to distribute dividends semi-annually, with the first payment scheduled for October 2024 in respect of H1 2024. The company aims to maintain a dividend pay-out ratio of 70% of annual distributable profits, post-tax, from 2024 onwards. 

Ali Saeed Juma Al Bwardy, Founder and Chairman of Spinneys, commented, “Having begun our story in Dubai in the early 1960s, we are proud to be taking another significant step in our journey. Spinneys is a long-standing brand with a strong heritage in the UAE and a commitment to quality, evolving over the decades to become one of the country’s leading premium fresh-focused food retailers. 

Our IPO represents an opportunity for investors to be part of our next stage of growth and we are excited to embark on a new chapter, bringing our fresh opportunity to a wider shareholder base.” 

Emirates NBD Bank acts as lead receiving bank, other banks include First Abu Dhabi Bank, Al Maryah Community Bank, Commercial Bank of Dubai and Wio Bank. 

Joint Lead Managers Emirates NBD Capital, HSBC Bank Middle East Limited, EFG Hermes UAE. Emirates NBD Capital acts as listing advisor. 

IPO subscription counsel:  

White & Case acts as legal advisor to the company as to English and U.S. law, while Ibrahim & Partners acts as legal advisor to the company as to UAE and DIFC law. 

Linklaters Dubai and London office act as legal advisors to the joint lead managers as to English, U.S. and DIFC law. 

Ernst & Young – Middle East (Dubai Branch) acts as independent auditors of the company as well as IPO subscription auditors.