Lulu Retail Holdings expects to raise $1.43 billion from its Abu Dhabi IPO
Lulu International Holdings plans to sell a 25 per cent stake or 2.58 billion shares in Lulu Retail Holdings public issue. The company expects to raise $1.43 billion from the listing, reported Bloomberg on Monday.
Lulu Retail Holdings Plc's Abu Dhabi initial public offering (IPO) is expected to raise $1.43 billion at the top end of the set range, making it UAE's biggest listing of the year, reported Bloomberg on Monday, November 4.
The public offer is anticipated to be priced at 2.04 dirhams ($0.56) per share, based on the terms of the agreement.
According to the report, at the top end of the IPO range of 1.94 dirhams, Lulu Retail Holdings's market capitalisation will reach 21.1 billion dirhams.
The shares offered by the retailer have attracted significant demand since the books opened for the deal last week, making this IPO the biggest public listing of the year, surpassing NMDC Energy’s $877 million share offer.
Through this IPO, Lulu International Holdings plans to sell a 25 per cent stake, equivalent to 2.58 billion shares in the firm. The final price for the public offer is expected to be announced on November 6, and the shares are scheduled to start trading on November 14.
About Lulu Retail
Lulu Retail operates one of the largest hypermarket chains in the Middle East. The company reported a $192 million profit last year and aims to maintain a dividend payout ratio of 75 per cent, as per the agency report.
The profit margins for the company are estimated to reach 5 per cent in the medium term, which is higher compared to the 2.6 per cent levels in 2023, the chief executive officer (CEO) told Bloomberg.
Lulu Group was founded by Indian entrepreneur Yusuff Ali. The company plans to open nearly 90 stores across the Gulf Cooperation Council (GCC) countries in the next five years, focusing on Saudi Arabia and the UAE as its main expansion markets, per the report.
Abu Dhabi Commercial Bank PJSC, Citigroup Inc, Emirates NBD Capital, and HSBC Holdings Plc are the joint global coordinators on the sale, and Moelis & Co is the advisor on the deal.
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