Lulu Retail Holdings PLC will offer 25 percent of its shares in an initial public offering on the Abu Dhabi Securities Exchange (ADX), the company said on Monday.
The Abu Dhabi Global Market-incorporated full-line retailer intends to sell a total of 2,582,226,338 (2.58 billion) ordinary shares, each with a nominal value of $0.014 (AED0.051).
The IPO
The offering will be available to UAE retail investors, including eligible employees of the group, as part of the UAE retail offering; to professional investors as part of the qualified investor offering; and to eligible senior executives of the group as part of the senior executives offering.
The subscription period will open on Monday, October 28, and end on Tuesday, November 5, for UAE retail investors, professional investors and eligible senior executives.
600,000 shoppers
“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. We founded Lulu in 1974 with the ambition to introduce and embed organized retail in the UAE and a commitment to create a shopping experience that customers would love and remain loyal to,” said Yusuffali M.A., chairman of Lulu Retail.
“We have exceeded our own expectations and today Lulu operates more than 240 stores across six GCC countries, delivering immense value every day for new and loyal customers,” he added.
Commenting on the offering, Saifee Rupawala, CEO of Lulu Retail, said: “Lulu is a brand synonymous with retail in the GCC and we’re incredibly proud to launch our IPO today. Over the past 50 years, we have grown from one store in Abu Dhabi to the largest pan-GCC retailer by market share and the fastest-growing player of scale in the Kingdom of Saudi Arabia. Every day, Lulu serves more than 600,000 shoppers.”
Dividend policy
The company intends to maintain a total dividend pay-out ratio of 75 percent of annual distributable profits after tax, paid semi-annually. Moreover, dividend for the six months ended December 31, 2024 will be paid in the first half of 2025.
As on August 31, 2024, the group’s network of 240 stores comprises 116 hypermarkets, 102 express stores, and 22 mini markets, with 103 stores located in the UAE, 56 stores located in Saudi Arabia, and 81 stores across the other markets.
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