In a significant move, United Arab Emirates (UAE) retail giant LuLu Group International on Monday, October 21, announced its plan to sell 25 percent of its shares through an initial public offering (IPO) and will be listed on the Abu Dhabi Securities Exchange (ADX).
The hypermarkets chain operator plans to sell 2,582,226,338 shares with a nominal value of Dirham 0.051 through a three-tranche IPO, with the subscription to open on Monday, October 28 and close on Tuesday, November 5, 2024.
UAE retail investors, employees, institutional investors, and eligible senior executives can subscribe to the offering.
The final offer price will be determined through a book building process and the Lulu Group expects its shares to begin trading on the ADX on or around November 14.
LuLu Group is targeting a total dividend pay-out ratio of 75 percent of annual distributable profits after tax, paid semi-annually. The company aims to pay dividends for the six months ended December 31, 2024 in the first half of 2025.
Commenting on the Offering, M A Yusuffali, founder and Chairman of the Group, said, “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.”
He said that the LuLu, which was founded in 1972, has exceeded its own expectations as it operates more than 240 stores across six GCC countries.
“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 is a brand “synonymous with retail in the GCC and we’re incredibly proud to launch our IPO today”, Saifee Rupawala, chief executive of LuLu Retail, said.
“Our scale is combined with a track record of delivering robust revenue growth, attractive profit margins and a well-defined growth strategy built around enhancing and delivering greater value from our existing stores, expanding our store network, delivering operational efficiencies and growing our high-value private label and loyalty programs.”
“With GCC retail presenting a $100 billion market opportunity over the next five years and our business in Saudi Arabia primed for further growth, we are confident that Lulu will continue to be where the world comes to shop,” he added.
