Fresh-food retail giant Spinneys to make a debut on Dubai Financial Market soon

Middle Eastern retail market giant Spinneys raised $375 million as an initial offer of 900 million shares equivalent to 25 per cent of its total issued share capital and received orders worth $19 billion, highlighting the immense investor appetite for the company's offering.

Dubai's stock markets have been a hotbed for IPOs in the past three years, experiencing robust investor demand. This year alone, the Dubai Parkin IPO raised a staggering AED 259 billion, showcasing the market's strength.

Lucrative for potential investors?

In Dubai, Spinneys claims a 27 per cent market share in the overall grocery and fresh produce space.

With a total of 75 stores across Dubai and Oman, Spinneys reported a Revenue of AED 2.87 billion (+9.2 YoY) and a Profit of AED 254 million (+18.7 YoY), indicating a strong growth profile.

Key things to know as an investor

Guaranteed Allotment

Individual investors were allowed to participate in Spinneys with a minimum investment of Dh5,000. Subsequent investments could be made in increments of Dh1,000, providing flexibility for those looking to build their stake.

The entry point for institutional investors was set at Dh1 million, with no upper limit on investment amounts.

Dividend Payout

Spinneys plans to pay-out 70% of its Profit after tax to the shareholders. It will be paid twice a year in both April and October, the first one being paid this October as H1-2024 payout.

The company also plans to expand in Saudi Arabia, by opening stores in Riyadh and Jeddah in collaboration with the Abdul Mohsin Al Hokair Group, which ensures a positive trajectory for the stock.