Abu Dhabi-based retail giant Lulu Retail, promoted by non-resident Indian businessman MA Yusuffali, officially launched its initial public offering (IPO) on Monday, aiming to raise $1.43 billion (approximately ₹12,000 crore) in the Gulf region.
The retail chain has set the IPO price range between AED 1.94 and AED 2.04 per share, with the final pricing expected to be confirmed on November 5. This price range suggests an issue size of AED 5.01 billion to AED 5.27 billion (around $1.36 billion to $1.43 billion). Shares from this offering will be listed on the Abu Dhabi Securities Exchange.
Upon the conclusion of the IPO, Yusuffali’s family, originally from Kerala, is poised to retain an effective 60% stake in Lulu Retail Holdings. In a previous transaction, Yusuffali sold a 20% stake in Lulu International Holdings Ltd to the Abu Dhabi Developmental Holding Company (ADQ) in 2021.
The company has announced that retail investors are guaranteed a minimum allocation of 1,000 shares, requiring a minimum investment of AED 5,000, with additional shares available in multiples of AED 1,000 thereafter. The Gulf region, including Abu Dhabi, the UAE, and Kuwait, boasts a significant non-resident Indian (NRI) population, which is expected to contribute to the IPO’s success.
Lulu Retail plans to sell a total of 2.582 billion shares, each with a nominal value of $0.014 (equivalent to AED 0.051), representing 25% of the total issued shares in the company. Lulu International Holdings Ltd, where Yusuffali’s family holds an 80% stake, is the sole shareholder facilitating this offering.
For the first half of 2024, Lulu Retail reported a revenue of $3.9 billion, reflecting a year-on-year growth of 5.6%. The company’s full-year revenue for 2023 also rose by 5.6%, reaching $7.3 billion, highlighting its ongoing growth trajectory in the retail sector.
