Lulu Retail launches IPO shares on Abu Dhabi stock exchange
Tue 29 Oct 2024ABU DHABI: Lulu Retail Holdings PLC announced the price range for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX), beginning the subscription period on Monday, October 28. The company’s shares will be available for the UAE Retail Offering, Eligible Senior Executives, and Professional Investors, with the subscription closing on November 5, 2024.
The price range for Lulu Retail shares has been set between AED1.94 and AED2.04 per share. If all shares are sold, the offering will raise between AED5.01 billion ($1.36 billion) and AED5.27 billion ($1.43 billion). Based on these figures, Lulu Retail’s anticipated market valuation at listing is estimated to be between AED20.04 billion ($5.46 billion) and AED21.07 billion ($5.74 billion).
The IPO includes 2,582,226,338 ordinary shares, representing 25% of the total issued shares, to be sold by Lulu’s sole shareholder, Lulu International Holdings Limited. The final offer price will be determined via a book-building process, with the announcement expected on November 6, 2024. Trading on ADX is set to commence on November 14, 2024.
Lulu Retail aims to distribute 75% of its annual profits after tax as dividends, paid semi-annually. The first dividend for the six-month period ending December 31, 2024, is targeted for distribution in the first half of 2025.
CEO Saifee Rupawala highlighted the IPO’s appeal to both local and international investors, emphasising Lulu’s position as the GCC’s largest retailer and a rapidly expanding entity in Saudi Arabia. “More than 600,000 people shop with Lulu daily,” he noted, adding that the company’s diverse product range appeals to varied consumer needs across the GCC.
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On October 28, 2024, Lulu and its shareholder secured cornerstone investor agreements with entities including the Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding Company, Emirates International Investment Company, and Oman Investment Authority. These cornerstone investors have collectively committed around AED753 million ($205 million) to the IPO, with EIIC alone committing $100 million. Their shares will be subject to a 180-day lock-up period post-listing.