Dubai Financial Market: Spinneys IPO Sparks 9% Share Surge

Omar Abbas - | Business

Investor demand and attention to Spinneys 1961 Holding's recent listing on the Dubai Financial Market (DFM) have been exceptionally high.

Institutional investors from around the world as well as local and international individual investors showed a great deal of interest in the IPO, with orders amounting to around AED71 billion ($19 billion). Interestingly, the offering, which did not include the cornerstone investor, was oversubscribed by an astounding 64 times, indicating the highest level of demand in recent memory for an IPO unrelated to the government on DFM.

Spinneys' shares debuted at the top of the offer price range, AED1.53 per share, following its initial public offering. The business raised about AED1.38 billion ($375 million) as a result of this successful pricing, and upon admittance to trading, it was inferred that its market value was AED5.51 billion ($1.5 billion). Under the ticker symbol "SPINNEYS," the company had a successful initial trading session, with shares rising by more than 9% in the first few trading hours and ultimately settling at a price that was 4.5% higher than the debut price.

Its own success as well as the resilience and liveliness of Dubai's capital market are both demonstrated by Spinneys' listing on the DFM. Spinneys' success as the second offering on DFM in 2024 validates DFM's dedication to attracting new private sector listings, promoting investor participation, and bolstering Dubai's financial sector along with the broader UAE economy.

Celebrating a historic moment

The chairman of Spinneys, Ali Saeed Juma Al Bwardy, highlighted the company's strong legacy and dedication to quality while expressing great delight in its historic status. He emphasized the benefit of offering shares on DFM, giving investors a chance to participate in Spinney's upcoming stage of expansion. CEO Sunil Kumar reiterated this sentiment, pointing to Spinneys' aggressive expansion plans and optimistic outlook in the context of the GCC's advantageous macroeconomic conditions.

Spinneys' successful listing signifies a significant strategic achievement for DFM, bringing strong equity to its market. Notably, increasing trust in Dubai's capital markets is shown in Spinneys' listing as the first non-government firm in 2024. The CEO of DFM and Nasdaq Dubai, Hamed Ali, underlined the importance of Spinneys' launch and highlighted the company's role in promoting economic diversity and expansion.

The success of Spinneys goes beyond its IPO; the company has ambitions to enter new markets and media. The company hopes to open four stores by the end of 2024 as part of its plan to expand into the Kingdom of Saudi Arabia. Furthermore, Spinneys plans to keep adding additional locations in the United Arab Emirates and launching cutting-edge ideas like the "The Kitchen, by Spinneys" eating concept and the "Spinneys Swift" hyperlocal e-commerce platform.

Positive Market Performance and Outlook

The DFM General Index has increased significantly as of the first quarter of 2024, adding to a total trading value that is greater than AED25 billion ($6.8 billion). Furthermore, since 2022, AED36.4 billion ($9.9 billion) in funds have been raised through initial public offerings (IPOs) on the DFM, demonstrating the increasing trust and appeal of Dubai's financial markets. In addition to representing a significant accomplishment for the company, Spinneys' successful IPO listing on DFM also bodes well for Dubai's burgeoning financial scene, laying the groundwork for future expansion and success.

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Omar Abbas
Omar Abbas
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