Lulu Retail Holdings PLC, a prominent retailer in the UAE and GCC region, has announced the launch of its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX). The IPO entails 2.58 billion shares, representing 25% of the company's total issued shares, with a price range set at AED 1.94 to AED 2.04 per share. The subscription period is open until November 5, 2024, catering to UAE Retail Investors, Eligible Senior Executives, and Professional Investors.
All shares in the IPO will be offered by Lulu International Holdings Limited, the sole shareholder. The company is projected to debut on the ADX on November 14, 2024, awaiting regulatory approval. The anticipated market capitalization post-listing is expected to be between AED 20.04 billion and AED 21.07 billion, paving the way for Lulu Retail's further growth.
Strategic investors have shown substantial interest in the IPO, with commitments totaling AED 753 million from cornerstone investors like Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding, Emirates International Investment Company (EIIC), and Oman Investment Authority. These investors have agreed to a lock-up period of 180 days after the listing.
Lulu Retail aims to share dividends semi-annually, with a payout ratio of 75% of annual distributable profits after tax. The first dividend distribution is slated for the first half of 2025 following the IPO launch. For more information, interested parties can access the prospectus and additional details on Lulu Retail's official IPO page.
