Lulu Retail eyes raising $1.43b through UAE maiden offering

This will be the country’s biggest IPO this year.

Lulu Retail Holdings has announced plans to raise $1.43b through an initial public offering (IPO) that will be listed on the Abu Dhabi Securities Exchange.

In a statement, the company said a total of 2,582,226,338 ordinary shares will be sold, representing 25% of the total issued shares in the company. This will be made available to UAE retail investors.

Subscription period will run until 5 November for UAE Retail Investors, Professional Investors and Eligible Senior Executives.

The final offer price will be determined through a book building process, whilst the listing date is expected to take place on or around 14 November.

Lulu Retail eyes a total dividend pay-out ratio of 75% of annual distributable profits after tax, paid semi-annually. It also targets to pay the dividend for the six months ended 31 December 2024 in the first half of 2025.

Since its founding in 1974, Lulu Retail, now operates over 240 stores across six Gulf Cooperation Council countries, said Chairman and founder Yusuff Ali M.A.

“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,” he said.

The lead receiving banks are Abu Dhabi Commercial Bank and First Abu Dhabi. Joint lead managers are Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank Middle East and EFG Hermes UAE. The receiving banks are First Abu Dhabi Bank, Dubai Islamic Bank, Emirates Islamic Bank, Abu Dhabi Commercial Bank, Mashreq and Emirates NBD.