Spinneys' $375 Million Dubai IPO Attracts Franklin Templeton
Supermarket chain Spinneys' in the United Arab Emirates is seeking to raise a 25% stake in an initial public offering, it disclosed on Tuesday.
Spinneys embarks on a journey with its Dubai initial public offering (IPO), aiming to raise AED 1.38 billion ($375 million). This move in the private sector has garnered significant attention, notably from investment heavyweight Franklin Templeton.[1]
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The offering, orchestrated by Al Seer Group LLC, entails the sale of 900 million shares valued between AED 1.42 ($0.39) and AED 1.53 ($0.42) each, valuing Spinneys at up to AED 5.5 billion ($1.50 billion).
The subscription window for Spinneys Holding plc will remain open until April 30th for institutional investors and closes a day earlier for retail buyers. The final pricing will be unveiled on May 1st, with trading slated to commence a week later.
Key players such as Emirates International Investment Company LLC and subsidiaries of Franklin Templeton have committed to injecting AED 275 million ($74.88 million) as cornerstone investors.
The Al Bwardy family owns Spinneys, which started by opening its first store in 1961 and now runs 75 supermarkets under the Spinneys, Waitrose, and Al Fair brands, with plans to expand into Saudi Arabia and establish four stores by year-end.
Emirates NBD Capital, Bank of America Corp., and HSBC Holdings Plc spearhead the IPO as joint global coordinators, with Rothschild & Co. serving as the independent financial adviser.
This IPO marks the second listing on the DFM this year, following the debut of Parkin's $429 million IPO last month. Parkin oversees public parking operations in the emirate.