Lulu hikes IPO offer size to 30% on high demand
Offer price range is unchanged at between Dh1.94 and Dh2.04 per share
Abu Dhabi: Lulu Retail Holdings PLC announced Monday it has increased the size of its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).
The total Offering size has been increased to 3.10 billion ordinary shares from the previously announced 2.58 billion ordinary shares, the company said in a statement.
The offering size now represents 30 per cent (previously 25 per cent) of the total issued shares in the company, which are to be sold by the company’s sole shareholder, Lulu International Holdings Limited.
The additional 516 million offer shares have been wholly allocated to professional investors only, as defined in the local prospectus. The offer price range is unchanged at between Dh 1.94 and Dh 2.04 per share. Lulu Retail also announced the addition of Masarrah Investment Company as a cornerstone investor.
Saifee Rupawala, CEO of Lulu Retail, said, "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.”
Market capitalisation of Dh20.04 bn
Assuming all the shares offered are sold, the total size of the offering has been revised to between Dh6.01 billion and Dh6.32 billion. And based on the offer price range, Lulu Retail is set to list with a market capitalisation 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, November 6," the company statement explained.
Additional cornerstone investor
Saudi Arabia-based Masarrah Investment Company, or Masarrah Invest, joins Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding Company, Emirates International Investment Company LLC (EIIC), and Oman Investment Authority as a cornerstone investor. Saudi Arabia-based Masarrah Invest has agreed to invest approximately Dh250 million.
Now, the aggregate commitments of all the cornerstone investors are approximately Dh1 billion, of which EIIC has committed to subscribe to $100 million, with the cornerstone investors’ shares being subject to a 180-day lock-up arrangement, following listing.