Lulu Retail Holdings Plc’s Abu Dhabi preliminary public providing (IPO) is anticipated to boost $1.43 billion on the prime finish of the set vary, making it UAE’s greatest itemizing of the 12 months, reported Bloomberg on Monday, November 4.
The general public provide is anticipated to be priced at 2.04 dirhams ($0.56) per share, based mostly on the phrases of the settlement.
Based on the report, on the prime finish of the IPO vary of 1.94 dirhams, Lulu Retail Holdings’s market capitalisation will attain 21.1 billion dirhams.
The shares supplied by the retailer have attracted vital demand because the books opened for the deal final week, making this IPO the largest public itemizing of the 12 months, surpassing NMDC Vitality’s $877 million share provide.
By this IPO, Lulu Worldwide Holdings plans to promote a 25 per cent stake, equal to 2.58 billion shares within the agency. The ultimate value for the general public provide is anticipated to be introduced on November 6, and the shares are scheduled to start out buying and selling on November 14.
About Lulu Retail
Lulu Retail operates one of many largest hypermarket chains within the Center East. The corporate reported a $192 million revenue final 12 months and goals to keep up a dividend payout ratio of 75 per cent, as per the company report.
The revenue margins for the corporate are estimated to achieve 5 per cent within the medium time period, which is greater in comparison with the two.6 per cent ranges in 2023, the chief government officer (CEO) advised Bloomberg.
Lulu Group was based by Indian entrepreneur Yusuff Ali. The corporate plans to open practically 90 shops throughout the Gulf Cooperation Council (GCC) international locations within the subsequent 5 years, specializing in Saudi Arabia and the UAE as its essential growth markets, per the report.
Abu Dhabi Business Financial institution PJSC, Citigroup Inc, Emirates NBD Capital, and HSBC Holdings Plc are the joint international coordinators on the sale, and Moelis & Co is the advisor on the deal.
