Other BriefingsLulu Retail’s IPO Fully Subscribed, Set to List on Abu Dhabi Exchange on Nov. 14
Lulu Retail Holdings Plc’s highly anticipated initial public offering (IPO) has attracted substantial investor interest, achieving full subscription within an hour of opening, setting the stage for a prominent listing on the Abu Dhabi Securities Exchange (ADX) on November 14. With an IPO price range set between 1.94 and 2.04 dirhams per share, the company anticipates a listing that may surpass the US$877 million raised by NMDC Energy, positioning Lulu’s offering as the UAE’s largest IPO of 2024.
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The IPO will see Lulu Retail release 25 percent of its share capital, a move that allows investors to buy into one of the Gulf Cooperation Council’s most successful and expansive retail giants. Founded in 1974 in the UAE, Lulu has grown to operate 240 stores across three distinct formats while establishing a robust online presence. Lulu’s market performance has been fueled by investments in digital infrastructure and global sourcing, according to Chairman Yusuff Ali MA. “With regional macroeconomic and demographic tailwinds behind us, we believe now is a perfect time to bring Lulu to market and further enable our ambitious growth plans,” he remarked.
The IPO’s offering size is estimated to fall between 501 and 527 crore dirhams. The final offer price will be confirmed on November 6, with proceeds from the IPO targeted toward supporting Lulu’s expansion efforts and amplifying shareholder value.
Lulu Retail’s financial trajectory reflects solid growth; for fiscal 2023, the retailer reported an EBITDA of 75.3 crore, with revenue reaching 7,300 crore and a compound annual growth rate of 7.4 percent from 2021 to 2023. In addition to solid financials, the company has committed to a total dividend payout ratio of 75 percent of annual distributable profits after tax, to be disbursed semi-annually, attracting long-term investment appeal.
Advised by Moelis & Company UK, with Abu Dhabi Commercial Bank, Citigroup Global Markets, Emirates NBD Capital, and HSBC Bank Middle East acting as joint global coordinators and joint bookrunners, Lulu’s IPO is not only a pivotal moment for the company but also a key development for the UAE’s retail and equity market.
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