Lulu Retail Holdings has announced an Initial Public Offering (IPO) and listing of its shares for trading on the Abu Dhabi Securities Exchange (ADX), in which a total of 2,582,226,338 ordinary Shares, each with a nominal value of US$0.014, representing 25 percent of the total issued Shares in the Company.
A 10% offering will be made available to UAE Retail Investors via the IPO, with a minimum guaranteed allocation of 1,000 shares. Eligible LuLu employees taking part in the subscription will have a minimum guarantee of 2,000 shares, including to Professional Investors as part of the Qualified Investor Offering (89 percent), and to Eligible Senior Executives of the Group as part of the Senior Executives Offering.
The subscription period will open on Monday, 28th October, and end on Tuesday, 5th November, for UAE Retail Investors, Professional Investors and Eligible Senior Executives.
The final Offer Price will be determined through a book-building process. The Company is targeting a total dividend pay-out ratio of 75 percent of annual distributable profits after tax, paid semi-annually. The Company targets that a dividend for the six months ended 31st December 2024 will be paid in the first half of 2025.
Admission of the Shares to trading on ADX is expected to take place on or around Thursday 14th November.
M. A Yusuff Ali Founder, Chairman and Non-Executive Director, Lulu Retail
“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. 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.”
“Integral to our growth is the vision and ambition of the UAE, KSA and the other GCC nations where strong national leadership is enabling positive demographic and consumption trends and driving impressive economic growth. We’re looking forward to welcoming new shareholders to Lulu and are sure they will share our passion for the Company and excitement for the future,” Yousuf Ali added.
Saifee Rupawala, Chief Executive Officer of Lulu Retail, said that, “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, enabled by our unmatched international sourcing network across 85 countries, ensuring we are deeply rooted in all GCC markets and able to offer over 200,000 active SKUs, catering to all our customers’ diverse needs. With GCC retail presenting a $100 billion market opportunity over the next five years and our business in the Kingdom of Saudi Arabia primed for further growth, we are confident that Lulu will continue to be where the world comes to shop.”
The Company endeavors to maintain a total dividend payout ratio of 75 percent of annual distributable profits after tax, paid semi-annually following the approval and publication of the results for the respective periods, subject to applicable financial parameters, internal and external circumstances, and as per applicable legal provisions.
The Group targets that a dividend for the six months ended 31st December 2024 will be paid in the first half of 2025.
