#Dubai Spinneys expands size of IPO retail offering

Dubai Spinneys expands size of IPO retail offering

Dubai supermarket chain operator Spinneys, which is planning a 25% stake sale in an IPO, has expended the size of its retail offering following high levels of demand from investors.

The UAE retail offering has been increased from 45,000,000 shares to 63,000,000 shares, and will now represent 7% of the total offer, instead of the previous 5%, the company said in a statement on Tuesday.

As the total size of the offering remains unchanged at 900,000,000 shares, representing 25% of the company’s total issued share capital, qualified investors will now be allocated 837,000,000 shares, instead of 855,000,000 shares, representing 93% of the total, compared to the 95% previously announced.

Meanwhile, Spinneys and the selling shareholder Al Seer Group LLC have appointed BHM Capital Financial Services PJSC as stabilisation manager with a view to support the market price of the shares following the listing. The number of stabilisation shares has increased from 45,000,000 previously to 63,000,000.

The IPO subscription period remains unchanged and will close today professional investors. The offer price range has been set between 1.42 dirhams ($0.38) and AED 1.53 per share, implying a market capitalisation upon listing of between AED 5.11 billion ($1.39 billion) and AED 5.51 billion ($1.50 billion).

The final offer price will be announced on Wednesday, May 1.