- A franchisee of the renowned supermarket chain Spinneys, operating in the UAE and Oman, has announced its intentions to go public with an initial public offering (IPO) on the Dubai bourse. Shareholder Al Seer Group LLC plans to divest 900 million shares, equivalent to a 25% stake in Spinneys 1961 Holding plc, making it the first listing of a supermarket chain operator in the UAE. "It is the right time for us to invite investors to participate in this business," CEO Sunil Kumar told Reuters.
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In line with its expansion strategy, the company aims to penetrate the Saudi Arabian market, with plans to inaugurate its first store in Riyadh in the first half of this year, followed by three more stores in Riyadh and Jeddah by year-end. Kumar emphasized targeting these cities due to their affluent customer base and high disposable income, underscoring the untapped opportunities in both Saudi Arabia and the UAE, the largest economies in the Gulf. Following the IPO, the company plans to initiate half-year dividends starting in October and maintain a dividend payout ratio of 70% of annual distributable profits after tax. Joint global co-ordinators and bookrunners Emirates NBD Capital, Merrill Lynch International, and HSBC Bank Middle East Limited, along with joint bookrunner EFG Hermes UAE Limited, will oversee the IPO process.
Why it matters
Spinneys operates 75 premium grocery retail supermarkets under the "Spinneys," "Waitrose," and "Al Fair" brands in Oman and the UAE, with plans to expand its store footprint in both regions this year.
