UAE’s retail powerhouse, Lulu Group, has announced an initial public offering (IPO) to sell 25% of its shares at a nominal value of Dh0.051 each. The IPO will involve over 2.58 billion shares and is set to open for subscription on October 28, closing on November 5. Following the subscription period, Lulu’s shares are expected to be listed on the Abu Dhabi Securities Exchange (ADX) on November 14, 2024. The offer price range will be disclosed just before the opening of the offering.

This IPO marks a significant milestone for Lulu Group, which operates more than 240 stores across the Gulf Cooperation Council (GCC) countries. The company has been a leader in the retail sector, employing over 50,000 individuals and catering to over 600,000 daily shoppers. Analysts anticipate robust investor interest in this offering, building on the strong demand seen in previous IPOs within the UAE.

The Lulu IPO will be managed by a consortium of banks including Abu Dhabi Commercial Bank and First Abu Dhabi Bank, among others. The offering is divided into three tranches: one for UAE retail investors, another for institutional investors, and a third for senior executives of the company. Lulu Group aims for a total dividend payout ratio of 75% of its annual distributable profits after tax, with plans to initiate dividend payments by mid-2025.

Founded in 1974 by Yusuff Ali MA, Lulu Group has established itself as a household name in the GCC retail landscape. With ambitious growth plans that include expanding its store network and enhancing its product offerings, Lulu is well-positioned to capitalize on the burgeoning retail market in the region, projected to be worth $100 billion over the next five years.