Lulu's IPO raises AED6.32b, share price set at AED2.04

Lulu Retail Holdings PLC today announced the successful completion of the bookbuild and public subscription process for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

Lulu Retail confirms the Final Offer Price for its ordinary shares has been set at AED 2.04 per Share, pricing at the top of the previously announced Offer Price Range and implying a market capitalisation of the Group at listing of AED 21.07 billion ($5.74 billion).

The Offering raised gross proceeds of AED 6.32 billion ($1.72 billion), making it the largest UAE IPO of 2024 to date.

The Offering achieved aggregate demand of over AED 135 billion ($37 billion) from local, regional, and international investors, a record for a non-Government UAE IPO over the past 10 years, with the IPO oversubscribed by more than 25 times across all tranches (excluding Cornerstone Investors).

The IPO received exceptional retail investor interest, with more than 82,000 retail investors subscribing to the Offering – a record for a UAE IPO over the past 10 years.

Admission of the Shares to trading on ADX is expected to take place on November 14, with Lulu Retail marking the 100th listing on ADX.

Saifee Rupawala, Chief Executive Officer of Lulu Retail, said, “We’re extremely proud to see such strong demand for the Lulu Retail IPO, which raised over $1.72 billion and saw total aggregate demand of $37 billion, a sign that investors share our passion and excitement for the Company. We look forward to rewarding the trust shown by investors in Lulu and remain confident we will achieve our guidance targets in 2024 and beyond.

The high level of demand reflects Lulu Retail’s attractive investment proposition and iconic brand, which is built on our leading pan-GCC market position, commitment to world-class customer experience, robust financial performance, and a well-defined strategy for growth. We’re also incredibly pleased to see extremely strong and record demand from UAE retail investors, with more than 82,000 subscribing for shares. We welcome all our new shareholders and look forward to sharing our journey with them as we continue to grow and deliver on our ambition for 2024 and beyond.”