The GCC retail giant aims to raise capital through its IPO from October 28 to November 5, with final share pricing scheduled for November 6, marking a significant event for the Lulu retail IPO ADX

Lulu Retail Holdings, a leading hypermarket operator in the Gulf Cooperation Council (GCC) region, has announced its intention to offer 25% of its company through an initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX). The offering, comprising 2.58 billion shares, is scheduled to run from October 28 to November 5, 2024, with the final price of the shares to be determined on November 6.

This IPO follows similar moves from other regional retail giants, including Spinney’s recent listing on the Dubai Financial Market. It marks the fourth listing on the ADX in 2024, underscoring the robust financial market in the United Arab Emirates (UAE). The listing date for Lulu’s shares is expected to be November 14.

Yusuff Ali, the founder and chairman of Lulu Retail, expressed excitement over the decision, saying, “It’s with immense pride that we announce the planned IPO of Lulu Retail on ADX. We’re the largest pan-GCC full-line retailer by selling space, sales, and number of stores.”

Lulu’s strong market presence, with 240 stores across six GCC countries, including 103 in the UAE alone, is expected to attract significant interest from investors. Yusuff Ali attributed the company’s success to the economic growth driven by strong national leadership in the GCC countries. The company aims to maintain a 75% dividend payout ratio, with payments made twice a year.

CEO Saifee Rupawala shared his vision for Lulu’s future growth, stating that the company’s strategy involves expanding its network, enhancing operational efficiencies, and growing its high-value private label and loyalty programmes. With the GCC retail market estimated to offer a $100 billion opportunity over the next five years, particularly in Saudi Arabia, Lulu is poised for significant expansion. This includes new hypermarkets in Makkah and Madinah, part of major development projects in the holy cities.

As the IPO approaches, Lulu expects a wide range of investors to participate, including retail investors, professional investors, and senior executives within the company. The company’s growth outlook, combined with its dominant market position, is likely to drive strong demand for its shares.