Supermarket chain Spinneys plans IPO in 2024 in Dubai

Spinneys Dubai LLC, the franchisee of the supermarket chain in the United Arab Emirates and Oman, is preparing an initial public offering of the business in the second quarter of 2024, three sources with direct knowledge of the matter said, according to news agency Reuters.

Spinneys is a British multinational supermarket chain active in the United Arab Emirates, Egypt, Qatar, Lebanon, Oman, and Pakistan. The largest shareholder and manager of the brand is the Dubai-based Al Bwardy Investment, founded by Mr. Ali Albwardy.

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time.

Albwardy Investment hired Rothschild & Co to advise on the planned IPO, the sources said, requesting anonymity as the plans are not public.

It invited banks this week to pitch for roles in the offering, expected to be up to 30% of the company, the sources added.

The potential IPO of Spinneys Dubai planned on the Dubai Financial Market, would add to the small but growing regional food retail sector.

Spinneys Dubai operates more than 65 stores across the UAE, its website says. In addition, it operates at least seven stores in Oman, Albwardy’s website says.

Albwardy, which says it has an annual turnover above $1 billion, also owns the franchise rights to upmarket British supermarket chain Waitrose.

IPO activity in the Gulf is anticipated to pick up after the pace slowed from an exceptional 2022, when Saudi Arabia and the UAE led new listings, raising nearly $22 billion – more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.

Middle Eastern companies still raised $5.3 billion in the first half of this year through 23 market debuts.

Americana Restaurants, the Middle East and North Africa franchisee of fast food restaurants KFC and Pizza Hut, as well as a seller of frozen foods, debuted in a dual listing in Abu Dhabi and Riyadh in December.