Lulu Retail plans $1.8 billion IPO; to be listed at Abu Dhabi Stock Exchange

UAE retail giant seeks to issue 25 percent shares on offer for sale (OFS) route to raise around $1.8 billion; A percentage of the shares will be allocated to employees.
Lulu Group CMD MA Yusuff Ali
Lulu Group CMD MA Yusuff Ali (File photo| A Sanesh, EPS)
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Lulu Retail Holdings, the largest and fastest growing pan-GCC full-line retailer and a public company limited by shares incorporated in the Abu Dhabi Global Market (ADGM), has today said it plans to proceed with an Initial Public Offering and to list its shares for trading on the Abu Dhabi Securities Exchange (ADX). 

With this Offer for Sale (OFS), a total of 2,582,226,338 ordinary shares, each with a nominal value of $0.014 (equivalent to AED 0.051), representing 25 per cent of the total issued shares of the company, are to be sold by the company’s sole shareholder, Lulu International Holdings Limited. With the issue, the retail chain plans to raise $1.8 billion.

Commenting on the share offer, Yusuff Ali M.A., Founder and Chairman of Lulu Retail, stated in a press release; “It’s with immense pride that we announce the planned IPO of Lulu Retail on ADX, bringing to market the largest pan-GCC full-line retailer by selling space, sales and number of stores."

The Offering will be made available to UAE retail investors, including eligible employees of the Group, professional investors as part of the qualified investor offering; and also to the eligible senior executives of the Group as part of the senior executives offering.

The subscription period will open on Monday 28 October and end on Tuesday 5 November for UAE retail investors, professional investors and eligible senior executives.

The final offer price will be determined through a book building process. The Company is targeting a total dividend pay-out ratio of 75 percent of annual distributable profits after tax, paid semi-annually. It targets that a dividend for the six months ended 31 December 2024 will be paid in the first half of 2025.

Joint lead receiving banks for the initial public offer are Abu Dhabi Commercial Bank and First Abu Dhabi. While, the joint lead managers are Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank Middle East and EFG Hermes UAE. The receiving banks are First Abu Dhabi Bank, Dubai Islamic Bank, Emirates Islamic Bank, Abu Dhabi Commercial Bank, Mashreq and Emirates NBD.

Admission of the shares to trading on the Abu Dhabi Securities Exchange is expected to take place on or around Thursday 14 November, Lulu Retail stated in a Tuesday press release.

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