UAE: NRI businessman Yusuffali's LuLu Retail targets Rs 12K cr IPO

retail giant LuLu Retail, is aiming to raise up to Dirham 5.27 billion (Rs 1,20,63,62,02,400) initial public offering (IPO) on the Securities Exchange (ADX), making it the largest listing in the UAE this year.

The hypermarket chain operator, which controlled by Non-Resident Indian (NRI) businessman , set the offer price range between Dirham 1.94 and Dirham 2.04 per share.

The subscription period starts on Monday and is expected to close on  November 5, 2024, for the UAE retail investors, eligible senior executives, and professional investors.

Based on the offer price range, Lulu Retail is set to list with a market capitalization of between Dirham 20.04 billion (Rs 4,58,73,80,44,800) and Dirham 21.07 billion (Rs 4,82,30,49,42,000).

A total of 2,582,226,338 ordinary shares, representing 25 percent of the total issued Shares in the company, are to be sold by the company’s sole shareholder, Lulu International Holdings Limited.

The final offer price will be determined through a book building process and is anticipated to be announced on November 6. Lulu plans to commence trading its shares on the ADX on November 14.

LuLu plans to pay a 75 percent dividend payout ratio of annual distributable profits after tax, semi-annually, for the six months ending December 31 and the first half of 2025.

“We expect continued strong macroeconomic growth across our six markets driven by favourable demographic and consumption trends, and we continue to invest in our business to drive growth and loyalty across our existing 240-store network while also opening new stores, enhancing our operational efficiencies, growing our private label range and our online and ecommerce business.”

Chief Executive Officer of LuLu Retail, Saifee Rupawala, said.

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