Spinneys announces intention to float on Dubai Financial Market

Spinneys IPO

Spinneys Holding plc, a prominent name in the UAE's retail sector, has announced its intention to float on the Dubai Financial Market (DFM), marking a significant milestone in its journey. The company plans to conduct an initial public offering (IPO) and list its ordinary shares for trading on the DFM, opening up investment opportunities for retail and professional investors.

The IPO will see 900,000,000 shares, each with a nominal value of Dh0.01, made available for subscription, representing 25 percent of the company's total issued share capital. These shares are existing shares held by Al Seer Group LLC, the selling shareholder, who reserves the right to adjust the offering size before the end of the subscription period, subject to regulatory approvals.

Investors in the UAE, both retail and professional, will have the opportunity to participate in the offering. The subscription period will commence on April 23 for retail investors and end on April 29. For professional investors, the subscription period will conclude on April 30. Upon completion of the offering, Spinneys' shares are expected to be admitted to trading on the DFM in May 2024.

Spinneys aims to pay dividends semi-annually, with the first payment scheduled for October 2024, in respect of the first half of the fiscal year 2024. The company plans to maintain a dividend payout ratio of 70 percent of annual distributable profits, starting from fiscal year 2024 onwards.

Ali Saeed Juma Al Bwardy, Founder and Chairman of Spinneys, expressed pride in the company's journey, emphasizing its strong heritage and commitment to quality. He highlighted Spinneys' evolution over the decades into one of the UAE's leading premium fresh-focused food retailers. The IPO presents an opportunity for investors to be part of Spinneys' next phase of growth, enabling the company to broaden its shareholder base and embark on a new chapter of expansion.

Spinneys' decision to go public reflects its confidence in the market and its readiness to leverage investor capital to fuel further development. As a well-established brand with a loyal customer base and a reputation for excellence, Spinneys is poised to capitalize on emerging opportunities in the retail sector and deliver value to its shareholders in the years to come.