LuLu Retail Holdings PLC has announced plans to proceed with an IPO and list its shares on the Abu Dhabi Securities Exchange (ADX). The company will offer 2.58 billion ordinary shares, representing 25% of its total issued share capital. LuLu International Holdings Limited, the sole shareholder, will be selling the shares.
The offering will be open to UAE retail investors, eligible employees, professional investors, and senior executives. The subscription period starts on October 28 and ends on November 5. The final offer price will be determined through a book-building process.
LuLu plans to distribute 75% of its annual distributable profits after tax as dividends, paid semi-annually. The first dividend for the six months ending December 31 2024 is expected in the first half of 2025.
“We founded LuLu in 1974 with the ambition to introduce and embed organised retail in the UAE and a commitment to create a shopping experience that customers would love and remain loyal to,” said Yusuffali M.A., Founder, Chairman and Non-Executive Director of LuLu Retail. “We have exceeded our own expectations, and today, LuLu operates more than 240 stores across six GCC countries, delivering immense value to new and loyal customers every day.
“Integral to our growth is the vision and ambition of the UAE, KSA and the other GCC nations where strong national leadership is enabling positive demographic and consumption trends and driving impressive economic growth,” he added. “We’re looking forward to welcoming new shareholders to LuLu and are sure they will share our passion for the company and excitement for the future.”
LuLu aims to expand its store network and enhance operational efficiencies over the next five years, capitalising on a $100 billion market opportunity in GCC retail.
The offering will be divided into three tranches: UAE retail investors, professional investors and senior executives. The IPO is expected to be completed on November 14, subject to regulatory approvals.
Joint global coordinators include Abu Dhabi Commercial Bank, Citigroup Global Markets Limited, Emirates NBD Capital PSC, and HSBC Bank Middle East Limited. Receiving banks include Abu Dhabi Commercial Bank, First Abu Dhabi Bank, and Dubai Islamic Bank.
