Lulu Retail Holdings has officially debuted on the Abu Dhabi Securities Exchange, attaining the distinction of being the bourse's largest initial public offering (IPO) of the year and marking the addition of its 100th listed company. The hypermarket chain operator successfully raised 6.32 billion Emirati dirhams, equivalent to approximately $1.72 billion.
The IPO was met with extraordinary demand, being oversubscribed by 25 times, with a staggering total demand reaching $37 billion and receiving subscriptions from 82,000 retail investors. Notably, this float is the largest for a non-government IPO in the United Arab Emirates in over a decade. While Lulu's IPO has set new records, Adnoc Gas holds the title for the biggest-ever IPO in Abu Dhabi, raising $2.5 billion in March 2023.
Lulu's IPO plan was first revealed on October 21 and its pricing was finalized on November 6 at the high end of its anticipated range. Yusuffali M.A., the Chairman of Lulu Retail, expressed enthusiasm about the listing, stating, “We’re delighted to list Lulu Retail on ADX in our home of Abu Dhabi and to provide an opportunity for local and international investors to benefit from the opportunity in our region and the growth and ambition of Lulu Retail.” Established in 1974, Lulu Retail Holdings boasts 241 stores and is recognized as the largest full-line retailer within the pan-Gulf Cooperation Council region.
The company reported a revenue growth of 5.6% year over year in the first half of 2024, amounting to $3.9 billion. During its inaugural trading session, the stock faced some volatility, primarily trading in the red but ultimately closing flat at 2.04 dirhams..