Muscat – Lulu Retail Holdings, the largest and fastest-growing pan-GCC full-line retailer, announced its intention on Monday to proceed with an initial public offering (IPO) of 25% of its total issued shares, to be listed on the Abu Dhabi Securities Exchange (ADX).
In the IPO, a total of 2,582,226,338 ordinary shares, each with a nominal value of $0.014 (equivalent to AED0.051), will be sold by Lulu Retail’s sole shareholder, Lulu International Holdings Limited, according to a public announcement made by the group. The final offer price will be determined through a book-building process.
The IPO will comprise three tranches. The offering will be made available to UAE retail investors, including eligible employees of the Lulu 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 October 28 and close on November 5 for UAE retail investors, professional investors, and eligible senior executives. Admission of Lulu Retail shares to trading on the Abu Dhabi Securities Exchange is expected to take place on or around November 14.
Commenting on the offering, Yusuffali MA, Chairperson of Lulu Retail, said, “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 organised retail in the UAE and a commitment to create a shopping experience that customers would love and remain loyal to. We have exceeded our own expectations, and today Lulu operates more than 240 stores across six GCC countries. Integral to our growth is the vision and ambition of the UAE, Saudi Arabia, and the other GCC nations, where strong national leadership is enabling positive demographic and consumption trends and driving impressive economic growth. We look forward to welcoming new shareholders to Lulu and are sure they will share our passion for the company and excitement for the future.”
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. 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 Saudi Arabia. Every day, Lulu serves more than 600,000 shoppers, enabled by our unmatched international sourcing network across 85 countries, ensuring we are deeply rooted in all GCC markets.
“Our scale is combined with a track record of delivering robust revenue growth, attractive profit margins, and a well-defined growth strategy built around enhancing and delivering greater value from our existing stores, expanding our store network, delivering operational efficiencies, and growing our high-value private label and loyalty programs.”
Lulu Retail is targeting a total dividend payout ratio of 75% of annual distributable profits after tax, paid semi-annually. The company anticipates that a dividend for the six months ended December 31, 2024, will be paid in the first half of 2025.
Lulu Retail, together with its subsidiaries, operates more than 240 hypermarket, express, and mini-market stores across the six GCC countries. The group holds the top position in modern offline grocery retail in the GCC region, capturing a 13.5% share of the GCC modern offline grocery market in 2023. It had a total selling space of approximately 1.3mn sqm as of December 31, 2023, which is approximately three times larger than the average selling space of Lulu’s publicly listed competitors in the GCC region.
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