Lulu Retail Holdings Increases Initial Public Offering Size To AED 3.1 Billion Amid Strong Investor Demand

Lulu Retail Holdings PLC, commonly known as Lulu Retail, has announced an expansion of its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX). The offering size has been increased to 3,098,671,605 ordinary shares from the previously planned 2,582,226,338 shares. This adjustment means that 30% of the company's total issued shares will now be offered, up from the initial 25%. These shares are being sold by Lulu International Holdings Limited, the sole shareholder.

The additional shares have been allocated entirely to the Qualified Investor Offering, which is available only to Professional Investors as defined in the Local Prospectus. The price range for these shares remains between AED 1.94 and AED 2.04 per share. If all offered shares are sold, the total offering size will range from AED 6.01 billion to AED 6.32 billion. Based on this price range, Lulu Retail's market capitalization is expected to be between AED 20.04 billion and AED 21.07 billion.

The final offer price will be determined through a book-building process and is anticipated to be announced on Wednesday, 6 November 2024. Lulu Retail's shares are expected to begin trading on ADX under the ticker symbol "LULU" on Thursday, 14 November.

Saifee Rupawala, CEO of Lulu Retail, commented: "The established pan-GCC presence of Lulu Retail and our clear strategy for growth has attracted a highly diverse investor base, and we’re pleased to increase the total size of the Offering to cater to the significant level of demand received from international, regional and local investors, and the inclusion of additional cornerstone investors to the IPO."

Lulu Retail also revealed that Masarrah Investment Company has joined as a Cornerstone Investor. This addition complements previously announced Cornerstone Investors: Abu Dhabi Pension Fund (ADPF), Bahrain Mumtalakat Holding Company Co. B.S.C., Emirates International Investment Company LLC (EIIC), and Oman Investment Authority (OIA).

This strategic move aims to meet high demand from various investor groups while strengthening Lulu Retail's position in the market with support from key financial entities.

With inputs from WAM