With an estimated listing date planned for November 14, 2024, Lulu Retail Holding—the group's retail segment—will be placed on the Abu Dhabi Securities Exchange (ADX), Either on or before the start of the offering, the price range for the shares will be revealed.

Appointed to supervise the IPO are important financial organizations. The joint lead managers are ADCB, Emirates NBD Capital, FAB, HSBC Bank Middle East, and EFG Hermes UAE; the joint lead receiving banks are Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB). Other banks assigned to be receiving banks for the IPO include Dubai Islamic Bank, Mashreq, and Emirates NBD.

Over the past few years, companies like Dubai Taxi Corporation, Salik, Al Ansari Exchange, and Adnoc entities conducting successful share offerings have driven a spike of IPOs in both the public and private sectors in the UAE. Given Lulu Group's prominence, analysts project strong demand for its IPO from institutional and retail investors.

Employing about 50,000 people, Lulu Group is a major retailer in the UAE and in the GCC. Long expected, especially by those eager to buy a piece in the retail behemoth, is the IPO, With a 20 percent investment in Lulu Group for $1 billion, Abu Dhabi-based holding company ADQ helped the business to enter other markets.

Ten percent of the IPO, or 258.222 million shares, will make up the first tranche. Except for qualified personnel who will get at least 2,000 shares, each subscriber will be assured at least 1,000 shares, While the third tranche will comprise 25.822 million shares, or one percent of the whole offer, the second tranche will offer 2.29 billion shares, representing 89 percent of the total offer.

After the ADX listing, the selling stockholders will follow a 180-day lock-up period. They cannot thus sell any shares during this period to guarantee market stability.

Currently ranking highest in the GCC by sales volume, store count, and retail space is Lulu Group. It was the second biggest grocery retailer in the UAE by 2023 and the biggest in Oman, Qatar, Bahrain , Kuwait, and Palestine. It is currently Saudi Arabia 's fastest-growing store as well. The group ran 240 stores—including 116 hypermarkets, 102 express stores, and 22 mini-markets—all throughout the GCC as of August 2024 Its stores are scattered over 103 sites in the UAE, 56 in Saudi Arabia, and 81 in foreign markets.

With a total selling area of around 1.3 million square meters, three times more than its listed rivals in the GCC, the group's retail network covers Operating 21 distribution hubs around the GCC and sourcing goods from 85 countries, the company typically serviced over 600,000 consumers daily in 2023.

Dividend policy of Lulu Group aims to pay semi-annual distributions from 75% of annual distributable profits after tax. First dividend for the six months ending December 31 will be paid by the corporation in the first half of 2025.

Founder and chairman of Lulu Retail Yusuffali MA expressed his excitement over the IPO and pointed out the company's remarkable expansion from its 1972 founding, Serving over 600,000 daily, Lulu Group started from one store in Abu Dhabi and grown to be the biggest retailer in the GCC. Expanding its store network, improving operational efficiencies, and advancing its private label and loyalty programs forms the core of the group's growth plan, CEO Saifee Rupawala also said.

With the GCC retail sector expected to reach a $100 billion market over the next five years, Lulu Group wants to keep expanding, especially in Saudi Arabia where the business sees major chances for development.

UAE: Lulu Group to launch IPO next week, selling 25% stake

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