On Monday, Lulu Retail Holdings PLC, the pan-GCC retailer, began its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) today, with shares priced between AED 1.94 and AED 2.04.
The company plans to sell 2.58 billion ordinary shares, representing 25 per cent of its total issued shares.
Based on the price range, Lulu Retail’s market capitalisation could reach between AED 20.04 billion and AED 21.07 billion.
GCC retail chain Lulu announces major public share sale on Abu Dhabi Securities Exchange
The subscription period opens today and closes on November 5, 2024 for UAE retail investors, eligible senior executives, and professional investors. Trading on ADX is expected to begin on November 14, 2024.
“Today marks another significant milestone as we open subscriptions for the Lulu Retail IPO. Our offering presents a unique opportunity for local and international investors to participate in the growth of the largest pan-GCC retailer by market share and the fastest-growing player of scale in the Kingdom of Saudi Arabia. More than 600,000 people shop with Lulu every day across our multiple store formats, which cater for all shopping experiences and bring the world to the GCC through our diverse and extensive product range,” Saifee Rupawala, Chief Executive Officer of Lulu Retail, said in a statement.
“We expect continued strong macroeconomic growth across our six markets driven by favourable demographic and consumption trends, and we continue to invest in our business to drive growth and loyalty across our existing 240-store network while also opening new stores, enhancing our operational efficiencies, growing our private label range and our online and e-commerce business.
“We remain confident we will achieve our guidance targets in 2024 and beyond, and the offer price range reflects our desire to prioritize a supportive aftermarket performance post-listing and to welcome all investors to join in Lulu Retail’s exciting next chapter.”
The company has secured cornerstone investments totalling AED 753 million from Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding Company, Emirates International Investment Company LLC, and Oman Investment Authority.
Lulu Retail operates more than 240 hypermarket, express and mini-market stores across six GCC countries, serving over 600,000 shoppers daily.
The company plans to distribute 75 per cent of annual distributable profits as dividends, paid semi-annually.
The final offer price will be announced on November 6, 2024.
Moelis & Company UK LLP DIFC Branch serves as the independent financial advisor, with Abu Dhabi Commercial Bank PJSC, Citigroup Global Markets Limited, Emirates NBD Capital PSC, and HSBC Bank Middle East Limited acting as joint global coordinators.
How to participate in the Lulu Retail IPO
- Obtain your National Investor Number (NIN)
- Register through the ADX website’s e-services portal
- Contact ADX centre on 800 239
- Study the IPO documents
- Read the Prospectus
- Review company information
- Consider the investment details
- Submit your subscription by choosing a receiving bank
- Subscribe via: Online banking, Branch visit or Bank manager
- Await share allocation
- You will receive notification of your share allocation
- The allocation may differ from your request
- The bank will refund surplus funds
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