Lulu Retail Holdings, the largest and fastest-growing pan-GCC full-line retailer, has commenced trading on the Abu Dhabi Securities Exchange (ADX) following its Initial Public Offering (IPO) and trading under the ticker “LULU”.
Lulu’s IPO raised gross proceeds of AED 6.32 billion ($1.72 billion) making it the largest offering in the UAE in 2024 to date. The offering saw aggregate demand of over AED 135 billion ($37 billion) from local, regional, and international investors, a record for a non-Government UAE IPO over the past 10 years, and an oversubscription level of more than 25 times across all tranches (excluding Cornerstone Investors). Cornerstone investors included leading sovereign and institutional investors from across the GCC.
A record 82,000 retail investors subscribed for shares in the IPO, demonstrating consumers’ awareness and connection with the Lulu brand across the GCC, with around [50,000] individuals registering for an ADX National Investor Number (NIN) in the sixteen days between Lulu announcing its Intention to Float (ITF) and the close of subscriptions. This compares to 50,000 NINs being issued during the entire 2023 calendar year.
Yusuffali M.A Chairman – Lulu Retail
“Our listing on ADX marks a day of great pride for the entire Lulu team. Many of our 55,000 employees have been with our Company for decades, demonstrating their commitment to providing for our customers and to growing our business, and this achievement would not have been possible without them. Our journey has been guided by the aspiration and vision of our regional leaders and their commitment to supporting the growth and success of businesses like ours. We’re delighted to list Lulu Retail on ADX in our home of Abu Dhabi and to provide an opportunity for local and international investors to benefit from the opportunity in our region and the growth and ambition of Lulu Retail.”
H.E. Ghannam Butti Almazrouei, Chairman of ADX, commented that, “The successful listing of Lulu Retail Holdings on ADX underlines the UAE’s economic resilience and dynamism, bolstering ADX’s diversified sector offerings and paves the way for more consumer and retail issuers to tap into ADX’s platform. Lulu’s addition to ADX’s growing portfolio reflects the UAE’s strides in cultivating a robust, multi-sector economy.
Almazrouei added that,“As this year’s largest IPO in the UAE, Lulu drew incredible demand from a global investor base, solidifying ADX’s role as a premier gateway for capital flows. This milestone aligns with ADX’s commitment to sustainable economic development, reinforcing Abu Dhabi’s position as a leading financial hub and advancing the UAE’s long-term vision. We are proud to support Lulu Retail and all our listed companies as they drive our nation’s financial growth and prosperity, contributing to a brighter and thriving economic future.”
Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, stated that, “Firstly, we extend our heartful congratulations to the Lulu Retail team on their successful listing on ADX. Lulu’s landmark achievement, underscores the robustness of the UAE economy and ADX’s role as a growth enabler and listing platform. As the 100th listed company on ADX, Lulu has set the record as the largest private sector IPO for a home-grown company in the UAE.”
Saifee Rupawala, Chief Executive Officer of Lulu Retail, said that, “I’m incredibly proud that the strength of the Lulu brand and the Company’s growth story connected with so many people during our IPO, resulting in record demand of $37 billion and 82,000 retail investor subscriptions. Whilst today marks a historic milestone for Lulu, our listing does not change our primary focus of delivering exceptional service and products to our loyal customers, ensuring Lulu is where the world comes to shop.”
Lulu Retail’s growth strategy is focused on four pillars: Enhancing its existing store network, expanding its store network, driving operational efficiencies and delivering revenue upside through private label and loyalty program expansion.
It is the largest pan-GCC full-line retailer by selling space, sales (retail sales value) and number of stores in 2023, and holds the top position in modern offline grocery retail in the GCC region, capturing 13.5 percent share of the GCC modern offline grocery market in 2023.
