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UAE retail giant Lulu has will raise between 5.01 billion and 5.27 billion UAE dirhams ($1.36 billion-$1.43 billion) from its IPO on the Abu Dhabi Securities Exchange (ADX).
The company has set the offer price range between AED 1.94 and AED 2.04 per share, with an estimated market capitalization of between AED 20.04 billion and AED 21.07 billion.
The subscription period starts today and is expected to close on 5 November 2024 for the UAE retail investors, eligible senior executives, and professional investors.
The final offer price will be determined through a book building process and is expected to be announced on 6 November 2024.
Lulu also announced cornerstone investor agreements dated 28 October with the state-backed Abu Dhabi Pension Fund, along with Bahrain’s sovereign wealth fund Mumtalakat, the Oman Investment Authority and Abu Dhabi’s Emirates International Investment Company (EIIC) under the qualified investor offering at the offer price.
The aggregate commitments of all the Cornerstone Investors is approximately AED 753 million, with EIIC has committed to subscribe to $100 million, with the shares subject to a 180-day lock-up arrangement following the listing.
Last week, Lulu announced it was going to list 2.58 billion shares, representing 25% of the company’s total share capital in a three-tranche IPO.
The company is targeting a total dividend pay-out ratio of 75% of annual distributable profits after tax, paid semi-annually, subject to its dividend policy. A dividend for the six months ended 31 December 2024 will be paid in the first half of 2025.
The expected date of listing the shares on the ADX is 14 November.
Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank and Citigroup are joint bookrunners, with Moelis & Co. retained as Financial Advisors.
Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank Middle East and EFG Hermes are joint lead managers. FAB and ADCB are the joint lead receiving banks, and the latter also retained as a listing advisor.
(Writing by Bindu Rai, editing by Brinda Darasha)
