UAE
Lulu Group Plans Major IPO on Abu Dhabi Bourse. The UAE retail giant Lulu Group has announced plans to list 25% of its share capital on the Abu Dhabi bourse, marking a significant move as the company seeks to leverage the ongoing economic momentum and a burgeoning listing boom in the Emirates. The hypermarket chain operator intends to float over 2.5 billion shares at a nominal value of Dh0.051 ($0.014) each through an initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).
Founded by Indian-born businessman Yusuff Ali in 1974, Lulu operates over 240 hypermarkets and shopping malls across ten countries, including India, Egypt, Malaysia, and Indonesia.
Subscription Details and Timeline
All shares offered in the public float will be sold by Lulu International Holdings, the company’s sole shareholder. Retail investors, including group employees, institutional investors, and eligible senior executives, will have the opportunity to subscribe. The subscription period opens on October 28 and will close on November 5 for all tranches. The final offer price will be determined through a book-building process, with shares expected to begin trading on the ADX around November 14.
A Legacy of Growth
Saifee Rupawala, Chief Executive of Lulu Retail, expressed pride in launching the IPO. “Over the past 50 years, we have grown from one store in Abu Dhabi to the largest pan-GCC retailer by market share,” he said. Rupawala highlighted the company’s track record of strong revenue growth, appealing profit margins, and a well-defined growth strategy. “With GCC retail presenting a $100 billion market opportunity over the next five years, we are confident that Lulu will continue to be where the world comes to shop,” he added.
Listing Boom in the UAE
Lulu’s IPO announcement follows a series of successful public offerings in the UAE, driven by robust investor demand. The recent listing of ADNH Catering raised Dh864 million through the sale of a 40% stake, showcasing the appetite for new issues in the market. Similarly, NMDC Energy completed the largest IPO in the Emirates this year, raising Dh3.22 billion and demonstrating the vitality of the current IPO landscape.
A Growing IPO Pipeline
The UAE’s IPO pipeline continues to expand, with Delivery Hero planning to list its UAE subsidiary, Talabat, and NMC Healthcare exploring strategic options, including a potential IPO. Etihad Airways is also preparing for a possible listing, marking a first for a major Gulf airline as it pursues ambitious growth plans through 2030.
Dividend and Expansion Plans
Lulu Group aims for a total dividend payout ratio of 75% of annual distributable profits after tax, to be paid semi-annually. The company reported a 5.6% annual increase in revenue to $3.9 billion in the first half of this year, fueled by sales growth from existing stores and the expansion of its store network.
Looking ahead, Lulu plans to open 80 new hypermarkets across the Gulf region and other countries over the next two years. The company is focused on increasing its market share, particularly in Saudi Arabia and the UAE, while maintaining leadership positions in other markets.
As the UAE continues to foster a dynamic investment climate, Lulu Group’s IPO stands to be a significant milestone, reinforcing the company’s commitment to growth and cultural exchange through its expanding retail footprint.
