Lulu Retail Holdings PLC has announced an expansion of its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX). According to a statement, the total offering size has been adjusted to 3,098,671,605 ordinary shares, up from the previously stated 2,582,226,338 ordinary shares. This increase means the offering now accounts for 30 percent (previously 25 percent) of the company’s total issued shares (the Offer Shares), which will be sold by the company’s sole shareholder, Lulu International Holdings Limited (the Selling Shareholder).
The additional 516,445,267 Offer Shares have been fully allocated to the Qualified Investor Offering (Tranche Two), which is intended for Professional Investors only, as defined in the Local Prospectus. The Offer Price Range remains unchanged, set between AED1.94 and AED2.04 per share. If all offered shares are sold, the total size of the offering is now projected to be between AED6.01 billion (approximately $1.64 billion) and AED6.32 billion (approximately $1.72 billion). Based on this price range, Lulu Retail is anticipated to list with a market capitalization of between AED20.04 billion (approximately $5.46 billion) and AED21.07 billion (approximately $5.74 billion). The final offer price (Final Offer Price) will be determined through a book-building process, with an announcement expected on Wednesday, November 6, 2024. Admission of Lulu Retail shares for trading on ADX under the ticker symbol LULU is anticipated to occur on Thursday, November 14.
Saifee Rupawala, Chief Executive Officer of Lulu Retail, commented: “Our established presence across the GCC and our clear growth strategy have attracted a diverse range of investors. We are pleased to expand the total size of the Offering to meet the substantial demand from international, regional, and local investors, as well as to include additional cornerstone investors in the IPO.”
Additional cornerstone investor
Today, Lulu Retail also announces the inclusion of Masarrah Investment Company (Masarrah Invest) as a Cornerstone Investor, joining previously announced Cornerstone Investors: (i) Abu Dhabi Pension Fund (ADPF), (ii) Bahrain Mumtalakat Holding Company Co. B.S.C. (Mumtalakat), (iii) Emirates International Investment Company LLC (EIIC), and (iv) Oman Investment Authority (OIA).
Masarrah Invest, a prominent investment holding company in Saudi Arabia, boasts over seventy years of experience in fostering public and private sector partnerships. Founded by Sh. Mutlaq Almutlaq and led by Managing Director Mr. Tariq Almutlaq, the company emphasizes talent equity, strong governance, stakeholder value, innovation, and credibility. Masarrah Invest has diversified interests across various sectors, including agro specialty chemicals, plastics, real estate, power and water, industrial gases, logistics, district cooling, recycling, and social infrastructure.
In alignment with Saudi Arabia’s Vision 2030, Masarrah Invest is actively expanding its partnerships within the Gulf Cooperation Council and globally to seize new opportunities. Committed to sustainability and impactful investments, Masarrah Invest plays a pivotal role in Saudi Arabia’s economic development, focusing on innovative and strategic growth. The company has committed to invest approximately AED250 million (approximately $68 million). The total commitments from all Cornerstone Investors, as per the Cornerstone Investor Agreements, amount to approximately AED1,003 million (approximately $273 million), with EIIC pledging to invest $100 million. The shares allotted to the Cornerstone Investors will be subject to a 180-day lock-up period after listing.
Subscription process
As previously detailed, the Offering is structured for the following subscribers:
- First tranche: A public offering (the “UAE Retail Offering”) aimed at UAE Retail Investors and other investors in the UAE (as defined in the UAE Prospectus), including Eligible Employees of the Group (as defined in the UAE Prospectus).
- Second tranche: An offering for Professional Investors (as defined in the SCA Board of Directors’ Chairman Decision No.13/R.M of 2021, as amended), referenced as the “Qualified Investors Offering.”
- Third tranche: An offering for Eligible Senior Executives of the Group (as defined in the UAE Prospectus), known as the “Senior Executives Offering.”
The IPO subscription period commenced on Monday, October 28, and will close on Tuesday, November 5, 2024, for the UAE Retail Offering (including Eligible Employees of the Group), Eligible Senior Executives, and Professional Investors. Moreover, the completion of the Offering and Admission is expected to occur on or around Thursday, November 14, 2024, subject to market conditions and obtaining necessary regulatory approvals in the UAE, including approval for listing and trading on the ADX.
According to an underwriting agreement established between the Company, the Selling Shareholder, and the Joint Bookrunners on October 28, 2024 (the Underwriting Agreement), the shares held by the Selling Shareholder after Admission will be subject to a lock-up period (the Lock-up Period) lasting 180 days post-Admission. Lulu Retail will also adhere to this Lock-up Period.
Read more: Modon Holding partners with LuLu to develop retail facilities in UAE, Egypt
Joint Lead Managers
Additionally, the Joint Lead Managers comprise Abu Dhabi Commercial Bank PJSC, EFG-Hermes UAE Limited, Emirates NBD Capital PSC, First Abu Dhabi Bank PJSC, and HSBC Bank Middle East Limited. The Joint Lead Receiving Banks are Abu Dhabi Commercial Bank PJSC and First Abu Dhabi Bank PJSC, with Al Maryah Community Bank LLC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, Emirates NBD Bank PJSC, Mashreq Bank PSC, and Wio Bank PJSC also serving as Receiving Banks. Gulf Bank K.S.C.P., National Investments Company K.S.C.P., SICO BSC (C), and Sohar International Bank SAOG have been appointed as Co-Lead Banks. Neither HSBC Bank Middle East Limited nor any of its affiliates will participate in marketing or managing any aspect of the UAE Retail Offering to individual investors.
Furthermore, the Internal Sharia Supervision Committee of Emirates NBD Bank P.J.S.C. has issued a Shariah pronouncement affirming that, in their assessment, the Offering complies with Shariah principles. Investors are encouraged to conduct their own due diligence to ensure that the Offering meets their individual Shariah compliance requirements.
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