Lulu Retail Holdings, the largest pan-GCC retailer, announced plans to list 25% of its shares on the Abu Dhabi Securities Exchange (ADX), in what is set to be one of the region’s most significant retail sector IPOs.
The company will offer 2.58 billion ordinary shares through its sole shareholder, Lulu International Holdings Limited. The subscription period will run from October 28 to November 5, 2024, with trading expected to commence around November 14. The final offer price will be determined through a book-building process.
“We’re bringing to market the largest pan-GCC full-line retailer,” said Yusuff Ali M.A., Founder and Chairman of Lulu Retail. “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.”
The offering will be available to UAE retail investors, including eligible employees, professional investors, and senior executives. The company plans to maintain a dividend payout ratio of 75% of annual distributable profits, with the first dividend payment for the second half of 2024 scheduled for early 2025.
Lulu Retail holds a dominant position in the GCC retail sector, commanding 13.5% of the modern offline grocery market as of 2023. The company ranks as the second-largest grocery retailer in the UAE and leads the market in Oman, Qatar, Bahrain, and Kuwait. It has also emerged as the fastest-growing retailer in Saudi Arabia.
The company’s operations are supported by an extensive infrastructure including 19 global sourcing offices, 21 distribution centers spanning 430,000 square meters, and a fleet of 1,400 vehicles. Its digital presence includes e-commerce operations through its website and mobile application, complemented by partnerships with major platforms like Amazon in the UAE and Talabat across various markets.
Recent innovations include the “Happiness Programme” loyalty initiative, launched in March 2023, which has attracted approximately 2.4 million members as of August 2024. The company has also implemented technological advances such as self-checkouts in over 70 stores.
The IPO will be managed by a consortium of leading banks, including Abu Dhabi Commercial Bank and First Abu Dhabi Bank as joint lead receiving banks, alongside Emirates NBD Capital, HSBC Bank Middle East, and EFG Hermes UAE as joint lead managers.
By: Vinod Kumar (UAE)