The company "Lulu for Retail" announced yesterday the price range for the sale of its shares and started the placement period for the initial public offering on the stock market in Abu Dhabi.
It is proposed that the placement period, starting yesterday, Tuesday, November 5, 2024, will close for different investors in the UAE, qualified institutional directors and professional investors. The price range of the listed shares is from 1.94 to 2.04 dirhams per share, which means a total value of the shares from 5.1 billion to 5.27 billion dirhams upon the sale of all offered shares.
According to this price range, the market capitalization of the company "Lulu for Retail" upon placement will be between 20.04 billion and 21.07 billion dirhams. A total of 2.582 billion common shares will be sold, accounting for 25% of the total number of issued capital shares of the company by the sole shareholder, "Lulu Al Ain Brothers Holding Company."
The final placement price will be determined through bookbuilding, expected to be announced on December 6 of the current year, with the expected allowance to trade shares on the Abu Dhabi stock market on Thursday, November 14. "Lulu" aims to maintain a general dividend policy at 75% of profits, subject to distribution, payable twice a year, provided that the policy of dividend distribution of the company is observed.
The company plans to pay dividends for six months, ending December 31, 2024, in the first half of 2025. General Director and Board Member Saif Al-Din Robabala noted that this public offering represents a unique opportunity for local and international investors to participate in the growth of one of the largest diversified retailers in the Gulf, stating that "Lulu" serves more than 600,000 customers weekly through its stores in the Gulf Cooperation Council countries.
