Lulu IPO: Can investors outside UAE subscribe? Process explained

Individual investors outside the UAE can subscribe to the much-awaited Lulu Retail initial public offering (IPO), which is slated to open for subscription on October 28.

According to the FAQ available on Lulu Retail’s website, foreign investors can participate in the IPO, as long as they meet the qualification requirements set out by the regulator.

The Abu Dhabi-headquartered pan-GCC retailer will sell 25 per cent of its shares through an IPO with a nominal value of Dh0.051 each. The company will sell over 2.582 billion (2,582,226,338) shares through a three-tranche IPO which will run from October 28 until November 5. The final offer price will be revealed in due course. It will be listed on the Abu Dhabi Securities Exchange.

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How to subscribe

For retail investors in the GCC and other countries interested in participating in Lulu Retail’s IPO, a retail option is available. A detailed FAQ is also available online for interested investors seeking more information.

Retail investors outside the UAE can subscribe by approaching stock brokers in the country or the designated receiving banks.

The receiving banks through which subscriptions can be made are First Abu Dhabi Bank, Dubai Islamic Bank, Emirates Islamic Bank, Abu Dhabi Commercial Bank, Mashreq and Emirates NBD. The joint lead receiving institutions are Abu Dhabi Commercial Bank and First Abu Dhabi; with joint lead managers being Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank Middle East and EFG Hermes UAE.

To subscribe to an IPO in the UAE, retail investors must have a National Investor Number (NIN), which can be obtained through brokerage firms. They can find guidelines and details on the websites of UAE brokerages. They can also contact them to know more information on the requirements and procedures on how to get NIN.

Indian investors can also subscribe to Lulu Retail IPO, subject to the regulations in the South Asian country.

Meanwhile, individual investors outside the UAE who wish to participate in the Lulu IPO must first obtain a NIN from the Abu Dhabi Securities Exchange (ADX). They can complete their subscriptions through electronic platforms such as online or mobile banking provided by participating banks.

Joseph Dahrieh, managing principal at Tickmill, explained: "The minimum subscription amount for individual investors in the First Tranche is Dh5,000, with additional investments made in increments of Dh1,000. Investors should also ensure they comply with the legal requirements of their home countries before participating."

Three-tranche IPO

Under the first tranche for individual subscribers and eligible employees, 258.222 million shares, representing 10 per cent of the offer, will be up for subscription. Each subscriber, other than eligible employees, will have a minimum guaranteed allocation of 1,000 shares, while each eligible employee will be guaranteed at least 2,000 shares.

• UAE retailer Lulu sees 'strong demand' for its IPO share sale