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Lulu shares drop on Abu Dhabi debut

The offering saw aggregate demand of over Dh135 billion

Published: Thu 14 Nov 2024, 9:26 PM

By
Issac John

Lulu and ADX officials during the listing ceremony. — Supplied photo

Lulu Retail Holdings’ shares made debut on Thursday on the Abu Dhabi Securities Exchange following its $1.72 billion initial public offering.

Trading under the ticker symbol “LULU,” the retail giant was down 1.96 per cent at Dh2 per share in afternoon trading after opening at Dh2.04, becoming the most traded stock on the ADX with 203.92 million shares exchanged as of 1.40pm UAE time.

The offering saw aggregate demand of over Dh135 billion from local, regional, and international investors ---- a record for a non-government UAE IPO over the past 10 years, and an oversubscription level of more than 25 times across all tranches (excluding cornerstone investors). Cornerstone investors included leading sovereign and institutional investors from across the GCC.

A record 82,000 retail investors subscribed for shares in the IPO, demonstrating consumers' awareness and connection with the Lulu brand across the GCC, with around 50,000 individuals registering for an ADX National Investor Number (NIN) in the sixteen days between Lulu announcing its intention to float and the close of subscriptions. This compares to 50,000 NINs being issued during the entire 2023 calendar year.

“The successful listing of Lulu Retail Holdings on ADX underlines the UAE’s economic resilience and dynamism, bolstering ADX’s diversified sector offerings and paves the way for more consumer and retail issuers to tap into ADX’s platform. Lulu’s addition to ADX’s growing portfolio reflects the UAE's strides in cultivating a robust, multi-sector economy,” said Ghannam Butti Almazrouei, chairman of ADX.

He said Lulu drew incredible demand from a global investor base, solidifying ADX’s role as a premier gateway for capital flows. This milestone aligns with ADX’s commitment to sustainable economic development, reinforcing Abu Dhabi’s position as a leading financial hub and advancing the UAE’s long-term vision. “We are proud to support Lulu Retail and all our listed companies as they drive our nation’s financial growth and prosperity, contributing to a brighter and thriving economic future.”

Yusuffali M.A., chairman of Lulu Retail, said the listing on ADX marked a day of great pride for the entire Lulu team. “Many of our 55,000 employees have been with our Company for decades, demonstrating their commitment to providing for our customers and to growing our business and this achievement would not have been possible without them. Our journey has been guided by the aspiration and vision of our regional leaders and their commitment to supporting the growth and success of businesses like ours.”

We’re delighted to list Lulu Retail on ADX in our home of Abu Dhabi and to provide an opportunity for local and international investors to benefit from the opportunity in our region and the growth and ambition of Lulu Retail.”

Abdulla Salem Alnuaimi, group chief executive officer of ADX, said Lulu’s landmark achievement underscores the robustness of the UAE economy and ADX’s role as a growth enabler and listing platform. “As the 100th listed company on ADX, Lulu has set the record as the largest private sector IPO for a home-grown company in the UAE. Its inclusion in the ADX family adds an additional Dh 21 billion to our market capitalization.”

“I’m incredibly proud that the strength of the Lulu brand and the Company’s growth story connected with so many people during our IPO, resulting in record demand of $37 billion and 82,000 retail investor subscriptions. While today marks a historic milestone for Lulu, our listing does not change our primary focus of delivering exceptional service and products to our loyal customers, ensuring Lulu is where the world comes to shop,” said Saifee Rupawala, chief executive officer of Lulu Retail.

He said Lulu’s commitment to investing in growth is stronger than ever, evident in the opening of 16 new stores so far this year, with a clear plan to further enhance and grow the store network and customer base across the region. “We’re confident in meeting our guidance targets for 2024 and beyond and are excited about sharing our journey with our many new shareholders around the world.”