Grocery giant Spinneys announced a significant boost in the number of shares available to everyday investors in its initial public offering (IPO). This move comes just days before the subscription window closes for retail investors in the United Arab Emirates.
Previously, the UAE Retail Offering tranche allocated 5% of the total shares to individual investors. In a recent statement, Spinneys bumped this allocation to 7%, translating to an additional 18 million shares. The total size of the offering, however, remains unchanged at 900 million shares, representing 25% of the company's issued share capital.
This adjustment comes alongside a minor reduction in the shares allocated to qualified investors. The Qualified Investor Offering tranche will now offer 837 million shares, down from the previously announced 855 million. This still represents a significant portion at 93% of the total offering.
Spinneys has not disclosed the reasoning behind the increased retail allocation. However, analysts suggest it could be a strategic move to broaden investor participation and generate greater public interest in the IPO. By offering a larger slice of the pie to retail investors, Spinneys might aim to create a more robust and diverse shareholder base.
The subscription window for UAE retail investors remains open until Monday, April 29th, 2024. The window for professional investors closes a day later on Tuesday, April 30th. The final offer price per share is expected to be announced on Wednesday, May 1st. The price range has been set between AED 1.42 and AED 1.53, implying a potential market capitalization of AED 5.11 billion to AED 5.51 billion upon listing.
Spinneys' decision to expand retail investor access could pave the way for a more inclusive IPO landscape in the region. It remains to be seen if this strategy translates into increased public participation and a successful offering for the grocery giant. However, this move undoubtedly signals Spinneys' confidence in its future growth potential and its willingness to engage a broader range of investors.