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.

About Author

Omar Abbas
Omar Abbas
132 Total posts


Read Also

Business
UAE reveals new regulations sparking concerns among cold callers

For Mohammed A, a Sri Lankan expat in Dubai, the prospect of a job wasn't just about employment; it was a chance at redemption.

Business
UAE: Banks introduce discounted financing rates for Golden Visa holders

Banks in the United Arab Emirates are rolling out the red carpet for Golden Residency holders, offering a suite of financial products tailored to meet their unique needs and preferences.

Business
Britain begins circulating banknotes bearing the image of King Charles

Wednesday saw the introduction of King Charles' portrait banknotes into circulation in Britain, almost two years after he succeeded the late Queen Elizabeth II.

Business
New York Stock Exchange says glitch that showed Berkshire Hathaway down has been resolved

A technical issue that forced trading for several large equities to halt and resulted in a 99.97% decline in Berkshire Hathaway's stock price was fixed, the New York Stock Exchange announced on Monday.

Business
Indian stocks decline amid poll expectations

Tuesday saw the biggest sell-off in Indian stocks in four years as the results of the vote counting indicated that the alliance led by Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) may not secure an overwhelming majority, as...

Business
UAE declares significant fuel price decrease for June 2024

Recently, news of lower fuel prices starting in June 2024 from the United Arab Emirates (UAE) grabbed headlines.

Business
Emirates Airlines announces the exclusion of Boeing 777X deliveries

Emirates Airlines, a leading global carrier, continues to navigate the dynamic aviation landscape with strategic decisions aimed at enhancing operational efficiency and customer satisfaction.

Business
Saudi Aramco’s $12 billion stock offer sells out in hours

The $12 billion share offering by Saudi Aramco was fully subscribed quickly after it opened on Sunday, which is good news for the government, which is looking to raise money to support a significant economic transformation plan.

Business
UAE announces an annual noon work ban to protect workers starting from this date

In a steadfast commitment to safeguarding worker health and well-being, the Ministry of Human Resources and Emiratization of the United Arab Emirates (UAE) has reinstated its annual noon work ban.

Business
UAE, Qatar sign agreement to prevent double taxation

The United Arab Emirates and Qatar have recently entered into an agreement aimed at preventing double taxation and combating fiscal evasion of income taxes.

Business
Abu Dhabi Chamber unveils UAE Digital Commerce and Innovation Growth Plans

A study showcasing the substantial expansion and promise of digital commerce in the United Arab Emirates was released by the Ministry of Economy and the Abu Dhabi Chamber.

Business
UAE Cybersecurity unveils strategies for secure remote work

The UAE Government Cybersecurity Council is sounding the alarm on the pressing need to fortify remote work environments.

Business
Dubai World Trade Center unveils the Work-from-Home License Initiative

Dubai World Trade Center (DWTC) has introduced commercial license packages tailored for remote work within "Expo Village," situated in the vibrant Expo City of Dubai.

Business
UAE President announces his visit to China on this date

The UAE President, Sheikh Mohamed bin Zayed Al Nahyan, is scheduled to undertake a significant state visit to the People’s Republic of China, beginning on Thursday, May 30.

Business
Emirates unveils a codeshare agreement with Avianca for expanded connectivity

Emirates, the esteemed Dubai-based airline renowned for its global reach, has embarked on a new venture in partnership with Avianca, a prominent Latin-American carrier.

Business
UAE unveils the deadline date for emiratisation targets in private firms

Reminders on the deadline for enterprises with 50 or more employees to complete their Emiratization aim by June 30 were sent out by the UAE Ministry of Human Resources and Emiratization (Mohre) on Tuesday.

Business
UAE warns against fake job ads in educational institutions

In the UAE, there has been a concerning increase in fake job advertisements on websites and social media platforms, falsely promoting employment opportunities in schools and universities.

Business
UAE launches Blue Residency Visa to Champion Sustainability

Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, announced the initiation of a special visa, recognizing outstanding contributions to environmental sustainability.

Business
UAE: Your Step-by-Step Guide for Residency Renewal

The General Directorate of Residency and Foreign Affairs in the United Arab Emirates (UAE) has announced adjustments to the residence and renewal fees, affecting both locals and foreign nationals residing in the country.

Business
"Emirates Insurance" guarantees compensation for car agencies damage claims

The Emirates Insurance Federation announced that insurance companies are cooperating fully and are committed to compensating for damages sustained by car agencies according to the terms of their contracts.

Dubai launches a job fair for students with 150+ opportunities