Our IPO
Fresh Opportunities
The Spinneys brand has grown to become one of the leading premium grocery retailers in the UAE, following its first store opening in 1961, with a strong heritage and long-standing brand. Spinneys’ fresh-focused offering serves the full range of shopping missions, with a focus on quality, service and convenience.
Our Business
Our brand
Spinneys is a long-standing brand with a strong heritage in the UAE. Throughout its history, Spinneys has earned a reputation for premium quality, by consistently prioritising high standards in customer service, freshness and food safety.
Who we are
Spinneys has evolved and grown over the decades to become an operator of 75 premium grocery retail stores under three brands in the UAE and Oman: “Spinneys”, “Waitrose” and “Al Fair”. Spinneys’ first store in Saudi Arabia is set to open its doors in Riyadh in Q2 2024, with three more stores targeted to open in the Kingdom in 2024.
Our Purpose
Our entire team is committed to our vision “not to be the biggest, but to be the best retailer”. Our purpose is “to nourish and inspire our communities to live better lives, day-by-day”. We do this by offering high quality food solutions that promote heathy and sustainable living.”
Our place in the community
We believe in playing an active and supportive role in the neighbourhoods we serve, continuously engaging with the local community through family focused events and initiatives such as the annual Spinneys Cycle Challenge and the Spinneys Family Run series.
Spinneys in Numbers
All figures are for FY 2023
Investment Highlights
One of the leading premium food retailers operating in an attractive region
Spinneys is well-positioned to capitalise on the robust economic landscape of the UAE, where the economy is expected to grow at a CAGR of 3.4% from 2022 to 2028, and where there is an affluent population expected to grow at a CAGR of 4.3% over the same period.
The Group is planning to expand into Saudi Arabia in 2024, the GCC’s largest economy, where the economy is expected to grow at a CAGR of 3.2% from 2022 to 2028. Spinneys will focus on store openings in Jeddah and Riyadh, the Kingdom’s most populous cities, where affluent population growth is projected at a CAGR of 6.4% over the same period.
Spinneys’ target market in the grocery retail segment is outpacing overall grocery market growth and is projected to grow at a CAGR of 4.4% from 2022-2028 in the UAE and a CAGR of 6.7% in the Saudi cities of Riyadh and Jeddah.
The Group is planning to expand into Saudi Arabia in 2024, the GCC’s largest economy, where the economy is expected to grow at a CAGR of 3.2% from 2022 to 2028. Spinneys will focus on store openings in Jeddah and Riyadh, the Kingdom’s most populous cities, where affluent population growth is projected at a CAGR of 6.4% over the same period.
Spinneys’ target market in the grocery retail segment is outpacing overall grocery market growth and is projected to grow at a CAGR of 4.4% from 2022-2028 in the UAE and a CAGR of 6.7% in the Saudi cities of Riyadh and Jeddah.
Spinneys held a 12% share of its target market in the UAE and 27% share of its target market in Dubai, in 2022. As at year-end 2023, 46 of Spinneys’ stores were in Dubai, solidifying its position as one of the leading premium grocery retailers in its home market and presenting an opportunity to further capture its target market through expansion.
Spinneys’ is one of the leading premium grocery retailers in the UAE and has been recognised by multiple industry bodies, having been awarded the BBC Good Food Supermarket of the Year for 2021, the RetailME Responsible Retailer of the Year for 2022 and the Signal Global Podcast Awards Bronze for Nourish, the Spinneys podcast, in 2023.
The Spinneys value proposition emphasises high-quality fresh products, with 85% of revenue in 2023 relating to food.
Exclusive private labels, SpinneysFOOD, SpinneysHOME, SpinneysWELLNESS and Fine Food, as well as Waitrose private label products, are a significant competitive advantage. On average, more than 7,200 SKUs were sold by Spinneys under its own private label and the Waitrose private label in 2023.
Private label products are targeted to be at least 10% cheaper for customers than branded alternatives.
In 2023, the Group had 3,948 brand relationships. Of the top 100, 78% were with international brands including Cadbury, Nivea and Chiquita. Spinneys also negotiates exclusive rights with brands, for limited-term periods, and has done so with brands including Heineken 0% beverages, Warburtons bread and Rude Health.
Spinneys’ omni-channel platform is built for customer convenience, with flexible store formats in a wide range of location types to maximise ease and accessibility.
The Group has invested in its e-commerce capabilities, including proprietary online platforms and apps for both Spinneys and Waitrose, as well as selling through aggregators including InstaShop, NowNow, Talabat and Deliveroo.
Spinneys’ success is grounded in the strength of its global sourcing network and its vertically integrated operational and supply chain capabilities, a fully integrated model that is hard to replicate.
The Group has over 870 suppliers in 44 countries, facilitated through subsidiaries in the USA, UK and Australia, enabling a highly efficient supply chain that minimises wastage while maintaining strong on-shelf availability.
Even during the Covid-19 pandemic, Spinneys maintained on-shelf availability between 84% and 94% through 2020 and 2021.
In addition, Spinneys operates two centralised production facilities in the UAE, together delivering c.1,500 SKUs daily.
The Group benefits from a long-standing employee base, with c.22% of full-time employees having a tenure of over 10 years as at year-end 2023.
Each of these factors contributed to the Group having an average Retail Revenue per GSA of AED 3,500 per sq.ft. in 2022, compared to a UAE market average in 2022 of AED 1,600 per sq.ft..
Spinneys has a robust historical growth profile. Revenue in 2023 grew to AED 2.87 billion, at a CAGR of 8.2% from 2019 through 2023, primarily driven by increasing Online Penetration, increasing Private Label penetration, and increasing numbers of Stores in Dubai, and the UAE more broadly. Improved resource utilisation and revenue efficiency, growth in the number of yearly transactions, supply chain capabilities and consistent product availability, and solid profitability and margins have all contributed to Spinneys’ growth.
Spinneys’ gross profit margin grew from 40.2% in 2021 to reach 42% in 2023.
Profit for the year 2023 stood at AED 254 million, having grown by 18.7% from 2022.
Profit for the year 2023 stood at AED 254 million, having grown by 18.7% from 2022.
Spinneys has identified multiple avenues to accelerate the profitable growth of its business. These include like-for-like growth for existing stores, driven by growth in the target market and an increase in the Group’s fresh offering, private label and e-commerce penetration.
Spinneys is also pursuing further expansion of its store network in the UAE and expansion into Saudi Arabia for the first time.
Spinneys is aiming to introduce both “The Kitchen, by Spinneys”, an innovative new meal solutions concept, and “Spinneys Swift”, a hyperlocal e-commerce platform in 2024; and will continue to seek operational efficiencies including supply chain efficiencies, fixed cost controls, increased in-house production and operating leverage.
Spinneys is led by a well tenured management team who have an average of 23 years’ experience, spearheaded by CEO Mr. Sunil Kumar, who began his professional career at Spinneys 30 years ago.
The Chief Financial Officer and Deputy Chief Executive Officer have 23 and 38 years of professional experience, respectively.
The company has developed a sustainability strategy, which covers various key aspects, including its healthy and organic food offering to promote good nutrition, a net zero emissions commitment in its own operations by 2040, programs to improve supply chain transparency and initiatives to reduce food waste. Alongside the strong management team, Spinneys also plans to establish a Sustainability Steering Committee.
Management is guided by an experienced and diverse Board of Directors, dedicated to upholding high standards of corporate governance, and led by the founding shareholder, Chairman Mr. Ali Al Bwardy, a figurehead in the UAE retail sector who is deeply committed to Spinneys’ future success.
Growth Strategy
Spinneys intends to realise its growth potential by capitalising on the following strategic levers:
Like-for-like growth
Driven by growth in the target market, fresh offering, private label offering and online sales penetration.
Target Market
Growth
Fresh
Offering
Private
Label
Online
Penetration
UAE Whitespace
Store expansion into significant UAE whitespace.
The UAE
KSA Whitespace
Store expansion into significant Saudi whitespace.
The KSA
The Kitchen, by Spinneys
“The Kitchen, by Spinneys” standalone dining concept launch, diversifying the core offering.
Operational Efficiencies
Across supply chain capabilities, fixed cost controls,
in-house production and operating leverage.
Supply Chain
Efficiences
Fixed Cost
Control
In-house
Production
Operating
Leverage
Our Leadership
Board of Directors
Executive Management
Transaction Timetable
How to Subscribe
To subscribe to the Spinneys IPO, follow the below steps. For more detailed information, please refer to the UAE Prospectus.
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Make sure you have your National Investor Number (NIN). If you don’t have a NIN, you can register for one through the e-services portal on the DFM website or the DFM Smart Services app. Alternatively call the DFM call center at: +971 4 305 5555.
- Review the content and documents on this IPO webpage to access more information about the Company and its IPO. The Prospectus provides all material information about the Company and the Offering, which will allow you to make an informed investment decision.
- If you have decided that you would like to invest, subscribe to the offering through one of the Receiving Banks. Each Receiving Bank will have their own channels, which typically include online, in-branch or through your bank relationship manager. The list of receiving banks and their details can be found at the bottom of this webpage, and in the Prospectus.
- You will be notified of the number of shares allocated to you. You may or may not receive the full allocation of your order. Any excess monies will be refunded to you.
Documents & Downloads
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FAQs
Spinneys 1961 Holdings PLC (“Spinneys”), together with its subsidiaries (the “Group”), is an operator of 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 six months of 2024, in Saudi Arabia. Spinneys owns Spinneys and Al Fair brands, and licenses the Waitrose brand in the UAE only. The Group is one of the leading premium grocery retailers in the UAE.
Spinneys offers high quality, fresh food to promote healthy and sustainable living. Spinneys is a long-standing brand with a strong heritage in the UAE since the early 1960s, earning a solid reputation for quality, operational excellence and active community engagement, with an ethos that prioritises customer service, freshness, quality and safety. The Spinneys team is committed to its vision “not to be the biggest, but to be the best retailer” and its mission “to nourish and inspire our communities to live better lives, day-by-day”.
Spinneys operates its stores under three brands, Spinneys, Waitrose and Al Fair, which are located in select cities of the UAE and Oman to appeal to different segments of consumers. In 2023, 46 of the Group’s Stores were in Dubai, 18 in Abu Dhabi (including 11 Stores operated by the Group pursuant to a services agreement), six in the Northern Emirates and five in Oman. Spinneys will also operate in Saudi Arabia, following the planned opening of the first Spinneys store in Riyadh in the first six months of 2024, as part of its strategic expansion plan.
The Group commanded a 12% share of its target market in the UAE and a 27% share of its target market in Dubai in 2022. As at 31 December 2023, 46 of the Group’s stores were in Dubai, solidifying its position as one of the leading premium grocery retailers in its home market and presenting an opportunity to further capture the target market through store openings.
The Group’s target market is affluent households earning over AED 20,000 per month, with higher average spending on groceries and a focus on quality and freshness. The target market in the UAE is projected to grow at a CAGR of 4.4% from 2022 to 2028 (compared to the total UAE grocery market CAGR of 3.9%). The target market in Riyadh and Jeddah is expected to grow at a CAGR of 6.7% for the same period (compared to the total Saudi grocery market CAGR of 4.8%).
The UAE’s economy is expected to grow at a CAGR of 3.4% from 2022 to 2028, with disposable income per capita projected to grow at a CAGR of 2.3% during the same period. While the UAE’s population is projected to grow at a CAGR of 0.7% from 2022 to 2028, the Affluent Population in the UAE is projected to grow faster, at a CAGR of 4.3%.
The Saudi economy is expected to grow at a CAGR of 3.2% from 2022 to 2028. The attractiveness of the market is further underpinned by macroeconomic drivers including strong population growth projected at a 1.4% CAGR from 2022 to 2028, an Affluent Population expected to grow faster than the overall population, at a projected CAGR of 6.4% from 2022 to 2028, and disposable income per capita projected to grow at a CAGR of 0.9% from 2022 to 2028.
Positioned for accelerated growth, Spinneys’ target market outpaces the total grocery market, with the Target Market in the UAE projected to grow at a CAGR of 4.4% from 2022 to 2028 (compared to the total UAE grocery market which is projected to grow at a CAGR of 3.9%, for the same period) and in Riyadh and Jeddah at a CAGR of 6.7% (compared to the total Saudi grocery market which is projected to grow at a CAGR of 4.8% for the same period).
The realisation of Spinneys’ growth potential is enabled by the following drivers:
- Like-for-like growth: where Spinneys will capitalise on its existing store network to take advantage of the high growth projected in its markets: 3.9% Compound Annual Growth Rate (“CAGR”) projected in the UAE grocery market from 2022 to 2028; 6.8% CAGR projected in the UAE foodservice market; and 4.8% CAGR projected in the total Saudi grocery market.
- UAE “whitespace”: where Spinneys is capitalising on the expansion in available retail space expected in the UAE, the equivalent of 538 Spinneys stores. This means Spinneys has a significant growth opportunity to open additional stores and capture further market share.
- Saudi “whitespace”: where Spinneys is capitalising on the expansion in available retail space expected in the Kingdom, equivalent to 1,190 Spinneys stores. This is further supported by structural tailwinds in Saudi Arabia, presents a compelling opportunity for Spinneys to grow its store network in the Kingdom.
- The Kitchen, by Spinneys concept: Leveraging the high growth market opportunity presented by the foodservice segment in the UAE, the Group intends to tap into growing consumer trends by launching the first stand-alone Spinneys casual dining concept.
- Operational efficiencies: The Group aspires to drive operating leverage through a scaled presence. Spinneys aims to increase private label participation with improved sourcing, and aims to increase its self-sufficiency with plans to invest in sourcing capabilities in Europe.
The Group has a robust historical growth profile. In 2020, Spinneys achieved record revenue, driven by heightened demand during the Covid-19 pandemic, and maintained momentum post-2021. Revenue for the year ended 31 December 2023 grew to AED 2.87 billion, at a CAGR of 8.2% from 2019 through 2023, driven by increasing online penetration, increasing private label penetration, and increasing the number of stores in the UAE. Adjusted EBITDA for the year ended 31 December 2023 grew 11.5% to AED 562 million, with an Adjusted EBITDA margin of 19.6%. Profit for the year grew 18.7% year-on-year to AED 254 million, with a profit margin of 8.9%.
The Offering is 100% secondary offering, meaning all shares being offered are existing shares, not new shares. A total of 900,000,000 shares, equivalent to 25% of Spinneys’ share capital, will be offered for sale. The Selling Shareholder reserves the right to amend the size of the Offering and the size of any Tranche at any time prior to the end of the subscription period at its sole discretion, subject to the applicable laws of the UAE and the approval of the Securities and Commodities Authority in the UAE (“SCA” or the “Authority”). For more information, refer to the Prospectus on Spinneys’ IPO webpage at https://ipo.spinneys.com.
The Company intends to adopt a dividend policy that seeks to lay down a broad framework for the distribution of dividends by the Company whilst appropriately balancing the need of the Company to retain resources for its growth and sustainability. The objective of the Company’s dividend policy is to provide fairness, sustainability and consistency in distributing profits to shareholders. Subject to applicable financial parameters, internal and external circumstances, and as per applicable legal provisions, the Company endeavours to maintain a total dividend pay-out ratio of 70% of annual distributable profits, after tax, paying dividends on a semi-annual basis, starting from October 2024 in respect of the first half of 2024.
Subscribers must complete the application form provided by the Receiving Banks or the DFM relevant to their Tranche, providing all required details. Subscribers who do not provide their NIN and bank account details will not be eligible for subscription.
Subscribers may only apply for the Offer Shares in one Tranche. In the event a person applies for Offer Shares in more than one Tranche, then the Lead Receiving Bank and the Joint Lead Managers may disregard one or both of such applications.
The Receiving Bank through which the subscription is made will issue to the Subscriber an acknowledgement of receipt which the Subscriber has to keep until the Subscriber receives the allotment notice. One copy of the subscription application after being submitted, signed and stamped by the Receiving Bank shall be considered an acknowledgement for receipt of the subscription application. This receipt shall include the data of the Subscriber, address, amount paid, details of the payment method, and date of the investment. The acknowledgement in the case of Electronic Applications via online internet banking and ATM would provide basic information of the application such as NIN number, amount, date, and customer bank account details.
If the address of the Subscriber is not filled in correctly, the Selling Shareholder, the Joint Lead Managers and the Receiving Banks take no responsibility for non-receipt of such allotment advice.
Please visit the dedicated section of the Spinneys IPO webpage ‘How to Subscribe’ or contact one of the Receiving Banks or DFM for information on how to subscribe through their channels.
Receiving Banks
