Lulu Retail to offer 25% stake in IPO on ADX

RIYADH: Hypermarket chain operator Lulu Retail Holdings has announced its intention to float 2.58 billion shares, representing 25 percent of the company, on the Abu Dhabi Securities Exchange. 

The initial public offering is scheduled to run from Oct. 28 to Nov. 5, with the final offering price to be determined on Nov. 6, according to a press release. 

This follows UAE-based Spinney’s recent share listing on the Dubai Financial Market in May, with Lulu Retail's IPO marking the fourth listing on the ADX this year. 

Lulu expects to attract strong interest due to its dominant market position across the Gulf Cooperation Council region, where it operates 240 stores across six countries, including 103 in the UAE. 

Yusuff Ali, founder, chairman and non-executive director of Lulu Retail, said: “It’s with immense pride that we announce the planned IPO of Lulu Retail on ADX, bringing to market the largest pan-GCC full-line retailer by selling space, sales and number of stores.” 

He added: “Integral to our growth is the vision and ambition of the UAE, Saudi Arabia and the other GCC nations where strong national leadership is enabling positive demographic and consumption trends and driving impressive economic growth.”  

The expected listing date for the shares on the ADX is Nov. 14. The offering will be accessible to UAE retail investors, professional investors, and senior executives within the company. 

“We’re looking forward to welcoming new shareholders to Lulu and are sure they will share our passion for the company and excitement for the future,” added Ali. 

According to the press statement, Lulu aims to maintain a total dividend payout ratio of 75 percent of annual distributable profits after tax, with payouts occurring twice a year.

“Our scale is combined with a track record of delivering robust revenue growth, attractive profit margins and a well-defined growth strategy built around enhancing and delivering greater value from our existing stores, expanding our store network, delivering operational efficiencies and growing our high-value private label and loyalty program,” said Saifee Rupawala, CEO of Lulu Retail.  

He noted the GCC retail market presents a $100 billion opportunity over the next five years, with significant growth potential in Saudi Arabia. 

In April, Lulu announced plans to launch new hypermarkets in Makkah and Madinah, further expanding its retail portfolio in Saudi Arabia.  

Jabal Omar Development Co. is developing the site in Makkah, while Al Manakha Urban Project Development Co. is overseeing the development in Madinah.