Lulu Retail Holdings Completes Successful IPO Raising AED 6.32 Billion With Share Price Set At AED 2.04

Lulu Retail Holdings PLC has successfully completed the bookbuild and public subscription process for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX). The final offer price for its ordinary shares is set at AED2.04 per share, which is at the top of the previously announced range. This pricing implies a market capitalisation of AED21.07 billion, approximately $5.74 billion.

The IPO raised gross proceeds of AED6.32 billion, or about $1.72 billion, marking it as the largest UAE IPO of 2024 so far. It attracted aggregate demand exceeding AED135 billion, around $37 billion, from investors locally, regionally, and internationally. This demand set a record for a non-Government UAE IPO in the last decade, with oversubscription surpassing 25 times across all tranches, excluding Cornerstone Investors.

Retail investors showed exceptional interest in the offering, with over 82,000 individuals subscribing to it—a record for a UAE IPO in the past ten years. The shares are expected to begin trading on ADX on Thursday, 14th November 2024. This listing will mark Lulu Retail as the 100th entity to be listed on ADX.

Saifee Rupawala, CEO of Lulu Retail, expressed pride in the strong demand for their IPO. He stated: "We’re extremely proud to see such strong demand for the Lulu Retail IPO, which raised over $1.72 billion and saw total aggregate demand of c. $37 billion, a sign that investors share our passion and excitement for the Company."

Lulu's Growth Strategy and Market Position

Rupawala highlighted that this high level of interest reflects Lulu Retail's attractive investment proposition and iconic brand status. The company is known for its leading position in the pan-GCC market and commitment to providing a world-class customer experience. Its robust financial performance and well-defined growth strategy further enhance its appeal to investors.

He also noted: "We’re also incredibly pleased to see extremely strong and record demand from UAE retail investors, with more than 82,000 subscribing for shares." He welcomed new shareholders and looked forward to sharing Lulu's growth journey with them.

The successful completion of this IPO signifies investor confidence in Lulu Retail's future prospects and strategic plans for growth beyond 2024.

With inputs from WAM