LuLu Retail Holdings To Initiate IPO On Abu Dhabi Securities Exchange On 28 October

Lulu Retail Holdings, a leading retailer in the Gulf Cooperation Council (GCC) region, has declared its plans to initiate an Initial Public Offering (IPO) and seeks to have its shares traded on the Abu Dhabi Securities Exchange (ADX). This move underscores the company's growth and its position as a key player in the retail sector within the GCC.

At the heart of this offering are 2.582 billion ordinary shares, each valued at $0.014 (equivalent to AED0.051), which amounts to 25% of Lulu Retail's total issued shares. The shares are being sold by Lulu International Holdings Limited, the sole shareholder of the company. The IPO is structured to engage a diverse pool of investors, including UAE retail investors, professional investors through the Qualified Investor Offering, and eligible senior executives of the group. The subscription period for these shares is scheduled from Monday, 28 October, concluding on Tuesday, 5 November.

The pricing of the shares will be established through a book-building process, with the company aiming to allocate 75% of its annual distributable profits after tax towards dividends, to be paid twice a year. The first dividend payment for the six months ending on 31 December 2024 is expected to be distributed in the first half of 2025, demonstrating the company's commitment to shareholder returns. The anticipated date for the shares to commence trading on the ADX is around Thursday, 14 November.

Yusuffali M A, the Founder, Chairman, and Non-Executive Director of Lulu Retail, expressed his pride in the company's journey and its upcoming IPO. "It's with immense pride that we announce the planned IPO of Lulu Retail on ADX, bringing to market the largest pan-GCC full-line retailer by selling space, sales and number of stores," he remarked. He highlighted the company's expansion from its inception in 1974 to over 240 stores across six GCC countries, attributing its success to strong national leadership within the GCC, which has fostered significant economic growth and customer loyalty.

Saifee Rupawala, Chief Executive Officer of Lulu Retail, shared insights into the company's success and future aspirations. He stated, "Lulu is a brand synonymous with retail in the GCC and we're incredibly proud to launch our IPO today." Rupawala noted the company's evolution from a single store in Abu Dhabi to becoming the foremost retailer in the GCC in terms of market share and growth, especially in the Kingdom of Saudi Arabia. He emphasized the company's daily service to over 600,000 customers, supported by an extensive international sourcing network across 85 countries.

Lulu Retail's growth strategy focuses on maximizing value from its existing stores, expanding its store network, enhancing operational efficiencies, and developing its private label and loyalty programs. With the GCC retail market projected to offer a $100 billion opportunity over the next five years, Rupawala is confident in Lulu's continued success. "With GCC retail presenting a $100 billion market opportunity over the next five years and our business in the Kingdom of Saudi Arabia primed for further growth, we are confident that Lulu will continue to be where the world comes to shop," he affirmed.

This IPO not only marks a significant milestone in Lulu Retail Holdings' journey but also reflects the flourishing retail landscape within the GCC. The offering aims to attract a wide array of investors, underscoring the company's robust growth trajectory and its strategic plans for expansion and enhanced shareholder value in the years ahead.