Lulu Group Plans IPO on Abu Dhabi Securities Exchange

Lulu Retail Holdings, the largest and fastest growing pan-GCC full-line retailer and a public company limited by shares incorporated in the Abu Dhabi Global Market (ADGM), is planning to proceed with an Initial Public Offering (IPO) and to list its shares for trading on the Abu Dhabi Securities Exchange (ADX).

The supermarket chain is planning to offer up to 25% stake (2,582,226,338 shares) with a nominal value of $0.014 per share on the ADX for its retail business, according to an intention to float released by Lulu Retail. The company expects to raise between $1.7 billion and $1.8 billion.

The IPO will be made available to the UAE retail investors, including eligible employees of the Group, as part of the UAE retail offering; to professional investors as part of the qualified investor offering; and to eligible senior executives of the Group as part of the senior executives offering.

The subscription period will open on Monday 28 October and end on Tuesday 5 November for the UAE retail investors, professional investors and eligible senior executives. The final offer price will be determined through a book building process, the prospectus said.

Expectations Exceeded

Yusuffali M.A., Founder, Chairman and Non-Executive Director of Lulu Retail, said that with the planned IPO of Lulu Retail on ADX, the company will bring to market the largest pan-GCC full-line retailer by selling space, sales and number of stores.

He said that they founded Lulu in 1974 with the ambition to introduce and embed organised retail in the UAE and a commitment to create a shopping experience that customers would love and remain loyal to.

“We have exceeded our own expectations and today Lulu operates more than 240 stores across six GCC countries, delivering immense value every day for new and loyal customers. Integral to our growth is the vision and ambition of the UAE, Saudi Arabia and the other GCC nations where strong national leadership is enabling positive demographic and consumption trends and driving impressive economic growth,” he added.

Synonymous Brand

Lulu Retail CEO Saifee Rupawala said that Lulu is a brand synonymous with retail in the GCC and over the past 50 years, the company has grown from one store in Abu Dhabi to the largest pan-GCC retailer by market share and the fastest-growing player of scale in Saudi Arabia.

Rupawala said that Lulu serves more than 600,000 shoppers every day, enabled by its unmatched international sourcing network across 85 countries, ensuring it is deeply rooted in all GCC markets catering to all its customers’ diverse needs.

Rupawala said that their scale is combined with a track record of delivering robust revenue growth, attractive profit margins and a well-defined growth strategy built around enhancing and delivering greater value from their existing stores, expanding store network, delivering operational efficiencies and growing the company’s high-value private label and loyalty programs.

“With GCC retail presenting a $100 billion market opportunity over the next five years and our business in Saudi Arabia primed for further growth, we are confident that Lulu will continue to be where the world comes to shop,” Rupawala added.

Lulu Retail saw its net income rise 133% y-o-y to $143.9 million in the first six months of 2024, while revenues increased 5.6% y-o-y during the period to $3.9 billion. The company plans to pay dividends worth 75% of its annual net income after tax. Dividends will be paid semi-annually, with the distribution for the second half of 2024 set to take place in the first half of 2025.