EFG Hermes, the leading investment bank in the Middle East and North Africa, has completed its advisory role on Spinneys’ $375m initial public offering (IPO) on the Dubai Financial Market (DFM). The IPO was significantly oversubscribed.
Spinneys, a premium grocery retail supermarket operator in the UAE and Oman, offered 25% of its total issued share capital through the sale of 900,000,000 existing shares at AED 1.53 per share. This implies a market capitalization of AED 5.5bn ($1.5bn).
The IPO attracted significant interest from local, regional, and international investors. The total book, excluding the cornerstone tranche, was covered more than 64 times. The company began trading today under the ticker [SPINNEYS].
“This achievement marks a significant milestone in the UAE’s financial landscape,” said Karim Meleka, Co-Head of Investment Banking at EFG Hermes. “The remarkable oversubscription of the offering underscores the strong investor appetite for quality assets within the UAE and across the broader MENA region. The overwhelming investor interest in the offering reflects the company’s robust growth potential and serves as a resounding vote of confidence in the broader economic outlook of the UAE.”
Spinneys operates 75 premium grocery retail supermarkets under the “Spinneys,” “Waitrose,” and “Al Fair” brands. The company also plans to open its first store in the Kingdom of Saudi Arabia during the first half of 2024. Spinneys commands a 27% share of its target market in Dubai and a 12% share of its AED 23bn target market in the UAE in 2022. Revenue in 2023 grew to AED 2.87bn, at a CAGR of 8.2% from 2019.
This transaction is the latest EFG Hermes has advised on in the GCC region. 2023 alone has seen the company advise on eight IPOs, including Parkin’s IPO on the DFM, the exchange’s most oversubscribed offering to date.