Lulu raises record AED 6.32 billion as it completes IPO

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), WAM reported.

The final offer price for Lulu Retail’s ordinary shares was set at AED 2.04 per share, the top end of the previously announced price range, resulting in a market capitalization of AED 21.07 billion ($5.74 billion) at listing.

The IPO raised gross proceeds of AED 6.32 billion ($1.72 billion), making it the largest UAE IPO of 2024 to date. Total demand for the offering reached AED 135 billion ($37 billion), a record for a non-government UAE IPO in the past decade. The offering was oversubscribed by more than 25 times across all tranches, excluding cornerstone investors.

Retail investors showed exceptional interest, with more than 82,000 subscribing to the offering—setting a record for retail participation in a UAE IPO over the past 10 years.

Shares are expected to begin trading on ADX on Thursday, Nov. 14, 2024, with Lulu Retail marking the exchange's 100th listing.

“We’re extremely proud to see such strong demand for the Lulu Retail IPO, which raised over $1.72 billion and saw total demand of about $37 billion, a clear sign that investors share our excitement for the company,” said Saifee Rupawala, CEO of Lulu Retail. “We look forward to rewarding the trust shown by investors and remain confident in achieving our guidance targets for 2024 and beyond."

Rupawala attributed the high demand to Lulu Retail’s strong market position in the GCC, its commitment to customer experience, robust financial performance, and growth strategy.

“We’re particularly pleased with the record demand from UAE retail investors, with more than 82,000 participating,” he added. “We welcome our new shareholders and look forward to sharing our journey with them as we continue to grow.”