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UAE retail giant LuLu will sell 2.58 billion shares, representing 25% of its stake through a three-tranche IPO that will start on October 28 and close on November 25.
The company will list its shares on the Abu Dhabi Securities Exchange (ADX) next month. The announcement of the final offering price will be on 6 November.
The expected date of listing the shares on the ADX is 14 November.
A percentage of the shares will be allocated to employees.
The company is targeting a total dividend pay-out ratio of 75% of annual distributable profits after tax, paid semi-annually. LuLu is targeting a dividend payout for the six months ended 31 December 2024 in the first half of 2025.
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.
Last week, a source familiar with the deal told Zawya the retail group, which owns hypermarkets supermarkets and malls across the GCC, Egypt, Far East, and India, was looking to raise between $1.7 billion and $1.8 billion through its IPO.
Founded by Yussuff Ali in the 90s and headquartered in Abu Dhabi, UAE sovereign investor ADQ also bought a 20% stake worth just over $1 billion in the group in 2020, paving the way for an investment supporting the group’s expansion of operations in Egypt.
This will potentially be the fourth IPO in Abu Dhabi this year, following NMDC Energy, which raised $877 million, Alef Education Holding Plc. which raised $515 million, and ADNH Catering, which is set to list its shares on ADX on 23 October.
(Reporting by Bindu Rai, editing by Seban Scaria)
