Muscat – Lulu Retail Holdings, the largest and fastest-growing pan-GCC retailer, has successfully completed its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX), raising AED6.32bn (approximately $1.72bn). The offering, which launched earlier this week, has become the largest IPO in the UAE in 2024 to date.

The IPO was oversubscribed by more than 25 times, with investor demand surpassing AED135bn (approximately $37bn) across all tranches, excluding cornerstone investors. This marks the highest level of demand for a non-government UAE IPO in the past decade, Lulu Retail said in a public announcement.

The company confirmed that the final offer price has been set at AED2.04 per share, placing the offering at the top of the previously indicated range. Based on this price, Lulu’s market capitalisation at listing will be AED21.07bn (around $5.74bn).

Retail investor interest was particularly strong, with more than 82,000 individuals participating in the offering, setting a new record for a UAE IPO in the last ten years. The shares are expected to begin trading on November 14, 2024, with Lulu Retail’s listing marking the 100th listing on the ADX.

Saifee Rupawala, CEO of Lulu Retail, said, “We are extremely proud to see such strong demand for the Lulu Retail IPO, which raised over $1.72bn and saw total aggregate demand of c. $37bn, a sign that investors share our passion and excitement for the company. We look forward to rewarding the trust shown by investors in Lulu and remain confident we will achieve our guidance targets in 2024 and beyond.”

Rupawala attributed the strong IPO demand to Lulu Retail’s “attractive investment proposition and iconic brand,” citing the company’s dominant position in the pan-GCC market, its commitment to world-class customer experience, robust financial performance, and clear growth strategy.

“We are also incredibly pleased to see extremely strong and record demand from UAE retail investors, with more than 82,000 subscribing for shares. We welcome all our new shareholders and look forward to sharing our journey with them as we continue to grow and deliver on our ambition for 2024 and beyond,” he added.

Founded in 1974, Lulu Retail is the region’s largest full-line retailer by sales, store numbers, and retail space. The company operates over 240 hypermarkets, express outlets, and mini-markets across six GCC countries. It also has a growing e-commerce presence through its mobile app, online store, and partner channels. Lulu sources products from 85 countries and serves over 600,000 shoppers daily, representing 130 nationalities, with an on-the-ground presence in 19 countries.