Lulu Retail Holdings Plc, operator of the hypermarket chain Lulu, has received a staggering $37 billion in orders for its $1.72 billion initial public offering (IPO) in Abu Dhabi, marking the UAE’s largest listing of 2024. The company, part of Lulu International Holdings, is offering 3.10 billion shares, or a 30% stake, at 2.04 dirhams ($0.56) each, the highest price in its range.
With this offer price, Lulu’s market capitalization is set to reach 21.1 billion dirhams upon its listing on November 14. Originally, the retailer had planned to sell a 25% stake and raise up to $1.43 billion, but the IPO size was increased due to overwhelming demand. The offering saw demand for all shares just an hour after books opened.
The IPO also secured cornerstone investments from several prominent investors, including Saudi Arabia’s Masarrah Investment Co. and Abu Dhabi Pension Fund, with total commitments exceeding 1 billion dirhams.
This IPO adds to a growing list of private sector listings in the region, offering investors more options beyond state-owned enterprises. Lulu, which plans to open about 90 stores across the Gulf over the next five years, has set its sights on Saudi Arabia and the UAE as key markets for expansion.
Abu Dhabi Commercial Bank, Citigroup, Emirates NBD Capital, and HSBC are coordinating the offering.