UAE: Lulu Retail increases IPO size to 30%

The offer price range is unchanged between Dh1.94 and Dh2.04 per share

Waheed Abbas

Published: Mon 4 Nov 2024, 5:43 PM

Last updated: Mon 4 Nov 2024, 9:08 PM

Lulu Retail, the largest pan-GCC full-line retailer, on Monday announced an increase in the size of its initial public offering (IPO) to 30 per cent, compared to 25 per cent earlier.

The total offering size has increased to over 3.09 billion shares (3,098,671,605) from the previously announced over 2.58 billion (2,582,226,338) ordinary shares.

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The additional 516,445,267 shares have been wholly allocated to the qualified investor offering – tranche two, accessible to professional investors only. The offer price range is unchanged between Dh1.94 and Dh2.04 per share, it said on Monday.

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Assuming all the shares offered are sold, the total size of the IPO has been revised to between Dh6.01 billion and Dh6.32 billion.

Based on the Offer Price Range, Lulu Retail is set to list with a market capitalization of between Dh20.04 billion and Dh21.07 billion.

The final offer price will be determined through a book-building process and is expected to be announced on Wednesday. Admission of Lulu Retail shares to trading on the Abu Dhabi Securities Exchange is expected to take place on November 14.

The retail giant announced that Saudi Arabia-based Masarrah Investment Company is investing Dh250 million as a new cornerstone investor in the IPO. The previously announced cornerstone investors are Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding Company, Emirates International Investment Company (EIIC), and Oman Investment Authority.

The aggregate commitments of all the cornerstone investors are approximately over Dh1 billion ($273 million), of which EIIC has committed to subscribe to $100 million. The cornerstone investors’ shares are subject to a 180-day lock-up arrangement.

“The established pan-GCC presence of Lulu Retail and our clear strategy for growth has attracted a highly diverse investor base, and we’re pleased to increase the total size of the Offering to cater to the significant level of demand received from international, regional and local investors, and the inclusion of additional cornerstone investors to the IPO,” said Saifee Rupawala, CEO of Lulu Retail.

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