Lulu Retail Holding, the UAE's leading retail giant, has announced plans to list on the Abu Dhabi Securities Exchange (ADX) with its initial public offering (IPO) scheduled to begin on October 28, 2024.
The offering will see 25% of the company’s shares, approximately 2.58 billion shares with a nominal value of Dh0.051 each, made available for public subscription. The IPO will close on November 5, with the listing expected on November 14.
The IPO is structured in three tranches, with the first tranche allowing subscribers to purchase 258.222 million shares, representing 10% of the total offering. Minimum allocations are set at 1,000 shares for most investors, while eligible employees are guaranteed at least 2,000 shares. The second tranche will offer 2.29 billion shares, constituting 89% of the total, and the final tranche will include 25.822 million shares, accounting for 1%.
Joint lead managers for the IPO include Abu Dhabi Commercial Bank, Emirates NBD Capital, and HSBC Bank Middle East. The offer price range is expected to be announced before the IPO opens.
Founded in 1972, Lulu Group operates over 240 stores across the GCC, serving over 600,000 customers daily. The company reported revenues of $7.27 billion (Dh26.7 billion) in 2023, with plans to distribute 75% of annual distributable profits as dividends.
Yusuffali MA, founder and chairman, emphasized the company's strong growth trajectory, stating,
“Lulu is a brand synonymous with retail in the GCC...we are looking forward to welcoming new shareholders.”
The IPO is anticipated to attract significant interest from both retail and institutional investors, building on the successful momentum of recent UAE IPOs.
News Source: Khaleej Times
