LuLu Retail closes with gross proceeds of Dh6.32 billion, making it biggest UAE IPO of 2024
Hypermarket operator pulls in 82,000 retail investors, which is another high
Dubai: LuLu Retail has emerged as the biggest IPO in the UAE for 2024, with gross proceeds totalling Dh6.32 billion.
The offer - which is priced at Dh2.04 a share - had combined demand of over Dh135 billion (c. $37 billion) from local, regional, and international investors - this is the best for a 'non-government UAE IPO over the past 10 years'.
25 times oversubscribed
The IPO oversubscribed by over 25 times across all tranches (excluding those from cornerstone investors).
The Dh2.04 a share sets up a market cap of Dh21.07 billion ($5.74 billion).
More than 82,000 retail investors subscribed to the Offering, a record for a UAE IPO over the past ten years.
The stock will be listed on ADX on November 14.
"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," said Saifee Rupawala, CEO of LuLu Retail.
"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, robust financial performance, and a well-defined strategy for growth.
"We’re incredibly pleased to see extremely strong and record demand from UAE retail investors, with more than 82,000 subscribing for shares."
That the LuLu stock float will bag a heavy retail investor participation was always a certainty. All that analysts had an eye on was how many would sign up and what sort of new benchmark it would create for future UAE IPOs.
LuLu Retail, which clubs the company's consumer-facing operations in the GCC markets, had earlier upsized its public offer to 30% from 25%. However the increased share was solely meant for institutional investors.