Lulu Retail, a hypermarket chain operator, has declared its plans to float 2.58 billion shares, marking a 25% stake on the Abu Dhabi Securities Exchange (ADX).
The initial public offering (IPO) is scheduled to be held from 28 October to 5 November 2024, with the final offering price set to be determined through a book-building process.
With this move, the company expects to draw significant interest due to its already strong presence in the Gulf Cooperation Council (GCC) region, reported Arab News.
The GCC region reportedly offers a $100bn opportunity over the next five years.
As of 31 August this year, Lulu operated 240 stores across the GCC, including 103 in the United Arab Emirates (UAE).
The company also engages in e-commerce through its website and app, supported by partnerships with Amazon in the UAE, HungerStation in Saudi Arabia (KSA), Snoonu in Qatar, and Talabat across all its markets.
Lulu Retail reported revenue of $3.9bn in the first half (H1) of this year, marking a 5.6% increase over the previous year.
Its full-year revenue for 2023 also rose by 5.6% to $7.3bn.
This growth was primarily driven by sales from existing stores and expansion of its store network, as well as an uptick in online sales.
The company’s earnings before interest, taxes, depreciation, and amortisation for H1 2024 were $391m, up by 4.3% year-on-year.
Outlining its dividend strategy, Lulu Retail is targeting a total dividend payout ratio of 75% of annual distributable profits after tax, to be paid semiannually.
Lulu Retail chair Yusuffali MA 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.
“We founded Lulu in 1974 with the ambition to introduce and embed organised retail in the UAE and a commitment to create a shopping experience that customers would love and remain loyal to."
In April this year, Lulu Group finalised two new hypermarket projects in the KSA cities of Makkah and Madinah, respectively.
