Lulu Retail Holdings PLC has officially announced the price range for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX), initiating the subscription period today, which will close on November 5, 2024, for UAE retail investors, eligible senior executives, and professional investors.
The share price is set between AED1.94 and AED2.04, aiming for a total offering size of AED5.01 billion to AED5.27 billion (approximately $1.36 billion to $1.43 billion). If fully subscribed, the market capitalisation for Lulu Retail is projected to range between AED20.04 billion (around $5.46 billion) and AED21.07 billion (approximately $5.74 billion). The offering will include 2,582,226,338 ordinary shares, representing 25% of the company’s total issued shares, sold by its sole shareholder, Lulu International Holdings Limited.
The final offer price will be confirmed through a book-building process, with the announcement scheduled for November 6, 2024. Lulu Retail is targeting a 75% dividend payout ratio of annual distributable profits after tax, with a dividend for the six months ending December 31, 2024, expected to be paid in the first half of 2025.
CEO Saifee Rupawala highlighted the IPO as a significant opportunity for both local and international investors, noting the company's robust presence in the GCC market, with over 600,000 daily shoppers across 240 stores.
Additionally, Lulu Retail has secured cornerstone investment agreements with key investors, including the Abu Dhabi Pension Fund and Oman Investment Authority, with total commitments approximating AED753 million (about $205 million). These cornerstone investors will adhere to a 180-day lock-up period post-listing, reinforcing confidence in the offering. Admission of shares for trading is anticipated on November 14, 2024.
News Source: Emirates News Agency
