United Arab Emirates (UAE) retail giant LuLu Retail has raised Dirham 6.32 billion (Rs 1,45,01,17,68,000) through its initial public offering (IPO), making it the country’s largest listing of 2024 to date.
The announcement comes as the hypermarket chain operator on Wednesday, November 6, announced the successful completion of the bookbuild and public subscription process for its IPO on the Abu Dhabi Securities Exchange (ADX).
In a statement, the company said that the Final Offer Price for its ordinary shares is set at Dirham 2.04 a share.
The offering achieved aggregate demand of over Dirham 135 billion from local, regional, and international investors, a record for a non-Government UAE IPO over the past 10 years
The IPO oversubscribed by more than 25 times across all tranches (excluding those from cornerstone investors).
More than 82,000 retail investors subscribed to the offering, a record for a UAE IPO over the past ten years.
The shares are set to be admitted to trading on ADX on November 14.
“We look forward to rewarding the trust shown by investors in Lulu and remain confident we will achieve our guidance targets in 2024 and beyond,” said Saifee Rupawala, CEO of LuLu Retail.
“The high level of demand reflects Lulu Retail’s attractive investment proposition and iconic brand, which is built on our leading pan-GCC market position, robust financial performance, and a well-defined strategy for growth.”
“We’re incredibly pleased to see extremely strong and record demand from UAE retail investors, with more than 82,000 subscribing for shares,” he added.
The LuLu IPO, which opened on October 28, garnered significant investor interest and was oversubscribed within an hour of its opening.
On Monday, November 4, the company increased its IPO size from 25 percent to 30 percent due to high investor demand and to accommodate a wider range of participants.
LuLu, founded by Indian-born M A Yusuff Ali in 1974, is a major Gulf supermarket chain with over 240 hypermarkets and shopping malls in 10 countries.
The retailer plans to pay a total dividend payout ratio of 75 percent of annual distributable profits after tax, semi-annually, for the six months ending December 31 and the first half of 2025.
