(MENAFN) Spinneys, a prominent retail player, witnessed a remarkable 11 percent surge in its shares during its inaugural trading session on the Dubai Financial Market, reaching a peak of 1.7 dirhams per share. Despite some retracement, the stock maintained a notable 8 percent increase. By 10:33 Dubai time, Spinneys' shares had risen by 8.5 percent, reaching 1.66 dirhams per share, outpacing the broader market's performance. Trading activity was robust, with values and volumes surpassing 125 million dirhams, facilitated by the trading of approximately 75 million shares.
The company had previously set the final offering price for its shares at 1.53 dirhams as part of its initial public offering (IPO), which involved the sale of a 25 percent stake on the Dubai Financial Market. The IPO successfully raised 1.38 billion dirhams (approximately USD375 million), implying a market valuation of approximately 5.51 billion dirhams (about USD1.5 billion) upon listing.
Spinneys' IPO garnered immense interest from local, regional, and international investors, with subscription demand reaching a staggering 71 billion dirhams (around USD19 billion). This overwhelming demand resulted in a subscription surplus of approximately 64 times for all tranches combined, excluding the main investor segment. Such robust demand and oversubscription levels represent a significant milestone, marking one of the highest recorded in recent years for non-government-related companies listed on the Dubai Financial Market.
Spinneys' successful debut reflects investor confidence in the company's growth prospects and underscores the appeal of the retail sector within the regional market. The strong performance on its first day of trading sets a positive precedent for Spinneys as it embarks on its journey as a publicly listed entity, positioning the company for continued success and value creation for shareholders in the future.
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