Lulu Retail Holdings, the largest pan-GCC full-line retailer, announced its offer price range for its highly anticipated initial public offering (IPO), setting it between Dh1.94 and Dh2.04 per share. This pricing indicates a market capitalization of between Dh20.04 billion and Dh21.07 billion.
The subscription period for the IPO begins today, October 28 and will remain open until November 5, Tuesday, 2024. The company plans to offer over 2.582 billion shares, representing 25% of its total issued shares.
Lulu Retail’s IPO is structured into three tranches, including, UAE retail investors, which includes eligible employees of the group; professional investors and senior executives from within the company.
The company has committed to a total dividend payout ratio of 75% of annual distributable profits after tax, with distributions to be made semi-annually. The first dividend payout, covering profits for the six months ending December 31, 2024, will be made in the first half of 2025.
Lulu Retail shares are expected to be listed on the Abu Dhabi Securities Exchange (ADX), with trading set to begin on or around Thursday, November 14, 2024.
Analysts predict strong demand for Lulu Retail’s IPO, with expectations of oversubscription across retail and institutional investor categories, following the trend of other recent IPOs in the region that received overwhelming investor interest.
The IPO is open to both GCC residents and Indian investors, subject to the applicable regulations in their respective countries. Retail investors can subscribe by approaching UAE stockbrokers and banks participating in the syndicate. Nearly 20 banks have been designated as receiving banks for the subscription.
To subscribe, retail investors must have a National Investor Number (NIN), which can be obtained through registered brokerages. Interested investors outside the UAE are advised to visit brokerage websites for guidelines on obtaining the NIN and completing the subscription process. Brokerages will conduct Know Your Customer (KYC) checks as part of the application process.
A detailed FAQ regarding the IPO is also available online to assist investors with the process.
This IPO marks a significant milestone for Lulu Retail as it seeks to leverage its regional dominance and capitalize on investor interest in the UAE’s robust capital markets.
Inputs from: Khaleej Times