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 Abu Dhabi Stock Exchange (ADX).
The hypermarket chain operator plans to sell 2,582,226,338 shares with a par value of AED 0.051 through a three-tranche IPO, with subscription due to start on Monday, October 28 and end on Tuesday, November 5, 2024.
Retail investors, employees, institutional investors and eligible UAE senior executives can subscribe to the offer.
The final offer price will be determined through a book building process and Lulu Group expects its shares to begin trading on the ADX on or around November 14.
LuLu Group aims for a total dividend payout ratio of 75 percent of annual distributable profit after tax, paid every six months. The company aims to pay dividends for the six months ended December 31, 2024, in the first half of 2025.
Commenting on the offer, Master Yusuf Alifounder and chairman of the Group, said: “It is with great pride that we announce the planned IPO of LuLu Retail on the ADX, bringing to market the largest full range retailer in the GCC by sales space, sales and store count.”
He said LuLu, which was founded in 1972, has exceeded its own expectations as it operates more than 240 stores in six GCC countries.
“We look forward to welcoming new shareholders to Lulu and are confident 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 are extremely proud to launch our IPO today,” said Saifee Rupawala, CEO of LuLu Retail.
“Our scale is combined with a track record of delivering steady revenue growth, attractive profit margins and a well-defined growth strategy built around improving and delivering greater value from our existing stores, expanding our store network, providing operational efficiency and increasing our high value private brands and loyalty programs.”
“With GCC retail representing a $100 billion market opportunity over the next five years and our business in Saudi Arabia poised for further growth, we are confident that Lulu will continue to be where the world comes to shop “, he added.
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