Supermarket chain Spinneys which is planning a 25% stake sale in an IPO, has set the offer price range between 1.42 dirhams ($0.38) and AED 1.53 per share, implying a market capitalisation upon listing of between AED 5.11 billion ($1.39 billion) and AED 5.51 billion ($1.50 billion).

At the top of the price range, the company will raise AED 1.37 billion ($375 million).

The final offer price will be determined through a book building process and is expected to be announced on 1 May 2024, the company said in a statement on Tuesday.

Emirates International Investment Company LLC (EIIC) and Templeton Asset Management and Franklin Templeton Investments, as investment managers on behalf of certain funds and accounts, will be cornerstone investors in the IPO with a total commitment of AED 275 million ($75 million). Their shares being subject to a 90-day lock-up arrangement, following listing.

The IPO subscription period starts on Tuesday and is expected to close on Monday 29 April 2024 for UAE retail investors and on Tuesday 30 April 2024 for professional investors. 

Shareholder Al Seer Group LLC is selling 900 million shares in Spinneys 1961 Holding plc, equal to a 25% stake.  

The company operates 75 premium grocery retail supermarkets under the 'Spinneys', 'Waitrose' and 'Al Fair' brands in the UAE and Oman and, following the planned opening of the Group’s first store in the first half of 2024, in Saudi Arabia.

(Reporting by Brinda Darasha; editing by Seban Scaria)