Supermarket retailer Lulu to offer 25% stake in IPO
Now Reading
Supermarket retailer Lulu to offer 25% stake in IPO

Supermarket retailer Lulu to offer 25% stake in IPO

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

Reuters

United Arab Emirates’ Lulu Retail Holdings, which runs one of the Middle East’s biggest hypermarket chains, said on Monday that it plans to sell a 25 per cent stake in its initial public offering.

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.

Founded in 1974 by Indian businessman Yusuff Ali, the retail conglomerate operates more than 240 stores across six GCC (Gulf Cooperation Council) countries.

Reuters reported in 2022 that Lulu was looking at an IPO and had hired investment bank Moelis & Co as an advisor.

The stock is expected to start trading on the Abu Dhabi Securities Exchange on November 14, according to the IPO document.

Lulu said it aims to maintain a total dividend payout ratio of 75 per cent of annual distributable profits after tax, and to make the payout twice a year, subject to relevant parameters.

Lulu joins other grocer firms in the Middle East that have sought IPOS, such as the offering earlier this year of UAE-based Spinneys and Saudi grocery retailer BinDawood Holding in 2020.

Saudi Arabia’s Savola Group said in February this year that it plans to list its grocer subsidiary Panda Retail, while the kingdom’s wealth fund last year acquired a 30 per cent stake in Tamimi Markets ahead of the supermarket chain’s planned IPO.

You might also like


© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top