(Bloomberg) -- High-end supermarket chain Spinneys rose in its Dubai trading debut after a rare private sector initial public offering in the United Arab Emirates. Still, it fell short of the pops investors have become accustomed to in the region.

Shares in Spinneys 1961 Holding Plc closed at 1.6 dirhams on Thursday, up 4.6% from the offer price of 1.53 dirhams, which was at the top of a marketed range. The IPO attracted heavy demand from investors who put in 71 billion dirhams ($19 billion) worth of orders for the 1.38 billion-dirham share sale.

Spinneys’ debut gain pales in comparison to the average 37% jump on the first day of trading of UAE IPOs over the last 12 months. Most of these listings since then have been by state-owned companies. 

Investors in the region have been used to big rallies for IPOs on day one, something which is not as common in other markets. Government listings are seen as a sure-fire way to make money as the state can afford to leave money on the table which typically ensures a big pop, something private owners are usually unwilling or unable to do. 

Despite the smaller gain, Spinneys’ debut bodes well for other privately held firms that may be weighing IPOs in the Gulf nation. 

Read more: Bumper Spinneys Listing Paves Way for More Dubai IPOs: ECM Watch

Of the 24 companies that have listed in the UAE since the start of 2021, only six — including Spinneys — have been privately owned, data compiled by Bloomberg show. 

The last family-owned company to go public in the UAE was money exchange firm Al Ansari Financial Services PJSC, which raised $210 million last year. After rising as much as 23% from the offer price, the shares are now trading about 3% above that level.

Spinneys’ IPO attracted Franklin Templeton as a cornerstone investor, making it one of the few companies in the UAE to have had such international backing. Fertiglobe Plc’s Abu Dhabi listing in 2021 drew Singapore’s GIC Pte and US hedge fund manager Jeff Ubben. 

Owned by the Al Bwardy family, Spinneys opened its first store in 1961 and now operates 75 supermarkets under the Spinneys, Waitrose and Al Fair brands in the UAE and Oman. It’s planning to expand into Saudi Arabia, the Gulf’s biggest economy, this year.

Emirates NBD Capital, Bank of America Corp., and HSBC Holdings Plc were joint global coordinators for Spinneys’ IPO, while EFG Hermes was a joint bookrunner. Rothschild & Co. was the independent financial adviser.

(Updates with closing price in first four paragraphs)

©2024 Bloomberg L.P.