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UAE: Lulu starts trading on ADX following Dh6.32-billion IPO

Some 82,000 retail investors subscribed for shares, with strong demand recorded from a global investor base

Published: Thu 14 Nov 2024, 2:01 PM

Updated: Thu 14 Nov 2024, 8:07 PM

By
Web Desk

Photo: Supplied

Lulu Retail started trading on the Abu Dhabi Securities Exchange (ADX) on Thursday following its record-breaking initial public offering (IPO).

The IPO raised gross proceeds of Dh6.32 billion, making it the largest offering in the UAE so far this year.

A record 82,000 retail investors subscribed for shares, with about 50,000 individuals registering at ADX within the 16-day period between Lulu IPO announcement and the close of subscriptions. The retailer also drew incredible demand from a global investor base.

"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.

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

Yusuffali M.A., chairman of Lulu Retail, recognised the role that their thousands of employees have played in the success of the hypermarket chain.

“Our listing on ADX marks 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. This achievement would not have been possible without them." he said.

Lulu's inclusion in the ADX adds AED 21 billion to the exchange's market capitalisation, said Abdulla Salem Alnuaimi, group CEO of ADX.

"At ADX, we will continue to introduce more purposeful initiatives and innovative market solutions to drive a thriving marketplace, expand investment opportunities for investors, and support the long-term success of our listed companies today and well into the future," he said.

Lulu Retail’s growth strategy is focused on four pillars: Enhancing its existing store network, expanding its store network, driving operational efficiencies and delivering revenue upside through private label and loyalty program expansion.

It is the largest pan-GCC full-line retailer by selling space, sales (retail sales value) and number of stores in 2023, and holds the top position in modern offline grocery retail in the GCC region, capturing a 13.5-per-cent share of the GCC modern offline grocery market in 2023.

In 2023, Lulu Retail was the second-largest grocery retailer in the UAE; the largest retailer in Oman, Qatar, Bahrain and Kuwait; and the fastest growing and largest pan-GCC retailer in the KSA.

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