The largest and fastest-growing retail trader in the Persian Gulf region - Lulu Retail Holdings PLC, has announced its intention to conduct an initial public offering (IPO) and list its shares on the Abu Dhabi Securities Exchange (ADX). The offering price will be determined based on the results of the subscription book formation process.
The announcement of the shares on ADX is expected on November 14. Funds raised from the offering will be directed solely to a single shareholder, who currently holds 100% of Lulu Retail.
The proposed shares will be available to small investors from the UAE (including eligible employees), professional investors, and high-net-worth individuals. The subscription period begins on October 28 and ends on November 5. The offering price will be determined through the subscription book formation process.
Lulu Retail's dividend policy anticipates a payout ratio of 75% of annual profit after tax, paid twice a year. The first dividend for the half-year ending December 31, 2024, is expected to be paid in the first half of 2025.
Yusuffali M.A., Chairman of Lulu Retail, commented: "We are proud to announce the IPO of Lulu Retail on ADX, representing the market's largest full-line retailer in the Persian Gulf in terms of sales area, sales volume, and the number of stores. Our growth in sales, high profit margins, and clear growth strategy, along with market potential in the $100 billion retail space in the Persian Gulf, reinforce our confidence in the future success of Lulu."
Lulu Retail plans to maintain a 75% payout ratio from annual profits, with semiannual payments. An independent financial advisor has been appointed, Moelis & Company UK LLP DIFC Branch.
Founded in 1974, Lulu has grown to manage more than 240 stores across six countries in the Persian Gulf.
