Lulu plans to offer more than 2.582 billion shares in the IPO, which will run from October 28 to November 5, according to its intention to float document
United Arab Emirates’ Lulu Retail Holdings, one of the largest hypermarket chains in the Middle East, announced on Monday its intention to sell a 25 percent stake through an initial public offering (IPO).
Lulu is set to offer over 2.582 billion shares in the IPO, which is scheduled to take place from October 28 to November 5, according to its prospectus.
Founded in 1974 by Indian entrepreneur Yusuff Ali, the retail group operates more than 240 stores in six Gulf Cooperation Council (GCC) countries.
In 2022, Reuters reported that Lulu was considering an IPO and had engaged investment bank Moelis & Co to provide advisory services.
The shares are expected to begin trading on the Abu Dhabi Securities Exchange on November 14, as indicated in the IPO document.
Lulu aims to maintain a total dividend payout ratio of 75 percent of its annual distributable profits after tax, with plans to distribute dividends twice a year, depending on various factors.
Lulu is following the trend of other grocery companies in the Middle East that have pursued IPOs, such as the earlier offering by UAE-based Spinneys and Saudi grocery retailer BinDawood Holding in 2020.
Additionally, Saudi Arabia’s Savola Group announced in February that it plans to list its grocery subsidiary, Panda Retail, while the kingdom’s wealth fund acquired a 30 percent stake in Tamimi Markets last year in anticipation of the supermarket chain's IPO.
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