Today's Edition
Allan Jacob (ABU DHABI)
The UAE's retail major Lulu, on Monday announced its long-awaited Initial Public Offering (IPO) and said it would list 25 percent of its share capital, or 2.5 billion shares on the Abu Dhabi Securities Exchange (ADX).
Lulu said subscriptions will open on October 28 and end on November 5 for UAE retail investors, professional investors and eligible senior executives of the group.
Shares will have a nominal value of $0.014, or Dh0.051, said the group in a statement. Trading in the group's shares is expected to begin on November 16 on the ADX.
The company is targeting a "total dividend pay-out ratio of 75 percent of annual distributable profits after tax, paid semi-annually". A dividend for six months ending December 2024 will be paid in the first half of 2025, the company said.
Impressive economic growth in the GCC and the Middle East has given Abu Dhabi-headquartered Lulu the impetus to go ahead with its much-awaited IPO.
"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," said Yusuffali M.A., Founder, Chairman and Non-Executive Director of Lulu Retail.
Lulu operates more than 240 stores across six GCC countries, and the IPO ties in well with its expansion plans for the region and in Asia where it has a major presence as well.
Saifee Rupawala, Chief Executive Officer of Lulu Retail views the the GCC retail sector as a $100 billion market opportunity over the next five years. He said that the business in the Saudi Arabia is "primed for further growth, we are confident that Lulu will continue to be where the world comes to shop".
More than 600,000 shoppers visit Lulu hypermarkets supermarkets and smaller stores daily, and its sourcing network extends across 85 countries.
"The group holds the top position in modern offline grocery retail in the GCC region, capturing 13.5 percent share of the GCC modern offline grocery market in 2023," the company said in the statement.
Revenues of the group hit $3.9 billion this year, and increase of 5.6 percent over the same period last year. In 2023, revenue rose by 5.6 percent to $7.3 billion.
Lulu's IPO comes on the back of a listings boom in the UAE. ADNH Catering, a unit of Abu Dhabi National Hotels, recently raised Dh864 million ($235 million). Earlier, NMDC Energy, a unit of Abu Dhabi's National Marine Dredging Company, mopped up Dh3.22 billion selling 23 percent of its share capital for the largest IPO in the country this year.
