UAE-based supermarket chain Lulu Group has set the price range for its upcoming initial public offering (IPO), aiming to raise between Dh5.01 billion and Dh5.27 billion ($1.36 billion-$1.43 billion) from the offering.
The shares will be priced between Dh1.94 and Dh2.04 per share. This price would allow Lulu to achieve a projected market capitalisation of between Dh20.04 billion ($5.46 billion) and Dh21.07 billion ($5.74 billion).
The group plans to list 2.58 billion shares, representing 25% of its total share capital, in a three-part IPO. The subscription period for the offering starts today and will remain open until November 5, 2024, for UAE retail investors, eligible senior executives and professional investors.
The final offer price will be revealed on November 6, 2024, following a book-building process.
“Our offering presents a unique opportunity for local and international investors to participate in the growth of the largest pan-GCC retailer by market share and the fastest-growing player of scale in the Kingdom of Saudi Arabia,” said Saifee Rupawala, Chief Executive Officer of Lulu Retail, in a statement.
Lulu has already secured investor agreements totalling Dh753 million ($205 million) from firms including the Abu Dhabi Pension Fund, Bahrain’s Mumtalakat, the Oman Investment Authority, and Abu Dhabi’s Emirates International Investment Company (EIIC). The latter has committed to subscribe to $100 million.
The cornerstone investors’ shares will all be subject to a 180-day lock-up arrangement, following the listing, scheduled for November 14, 2024.
The company aims for a 75% dividend payout ratio of annual distributable profits after tax, with semi-annual payments. The dividend for the period ending December 31, 2024, is scheduled for the first half of 2025.
