UAE Retail Superstar Lulu Says It Will IPO on the Abu Dhabi Exchange for $1.8 Billion

INN/Abu Dhabi, @Infodeaofficial

The biggest retailer in the GCC, Lulu Retail Holdings, announced plans to sell 25% of its shares on the Abu Dhabi Securities Exchange (ADX). This is expected to be one of the biggest initial public offerings (IPOs) in the retail sector in the region. Lulu International Holdings Limited, the company’s sole shareholder, will sell 2.58 billion common shares. Trading is anticipated to start around November 14 and the subscription period will last from October 28 to November 5, 2024. A book-building procedure will be used to calculate the ultimate offer price.

According to Yusuff Ali M.A., the founder and chairman of Lulu Retail, “we’re bringing to market the largest pan-GCC full-line retailer.” “Since our founding in 1974, we’ve grown to operate more than 240 stores across six GCC countries, serving over 600,000 shoppers daily from 130 nationalities.” Retail investors in the UAE, including top executives, qualified employees, and professional investors, will be able to purchase the offering. The first dividend payment for the second half of 2024 is planned for early 2025, and the firm intends to maintain a dividend payout ratio of 75% of yearly distributable profits.

As of 2023, Lulu Retail commands 13.5% of the modern offline grocery market, giving them a prominent position in the GCC retail industry. The corporation dominates the markets in Oman, Qatar, Bahrain, and Kuwait and is the second-largest grocery retailer in the United Arab Emirates. Additionally, it has become Saudi Arabia’s fastest-growing retailer.

An large infrastructure, comprising 21 distribution centres totalling 430,000 square meters, 19 global sourcing offices, and a fleet of 1,400 trucks, supports the company’s activities. Its digital presence consists of e-commerce activities via its website and mobile application, as well as collaborations with significant platforms such as Talabat in many markets and Amazon in the United Arab Emirates.

The “Happiness Programme” loyalty program, which was introduced in March 2023 and had 2.4 million members as of August 2024, is one example of a recent invention. In more than 70 outlets, the company has also included technological advancements like self-checkouts. A group of top banks will oversee the IPO, with Emirates NBD Capital, HSBC Bank Middle East, and EFG Hermes UAE serving as joint lead managers and Abu Dhabi Commercial Bank and First Abu Dhabi Bank serving as joint lead receiving banks.