Lulu Retail Holdings Plc’s $1.72 billion IPO in Abu Dhabi attracted $37 billion in orders, with significant interest from global investors like Vanguard Group Inc. and Singapore’s sovereign wealth fund, GIC Pte., Bloomberg reported.
The company issued 3.1 billion shares, representing a 30% stake. Each share was priced at 2.04 dirhams ($0.56), the highest point of the offered range. At this price, the retailer’s market capitalisation will reach 21.1 billion dirhams upon its listing on November 14.
Lulu’s IPO attracted overwhelming interest, with demand exceeding AED 135 billion – more than 25 times the shares offered. This level of interest set a decade-high record for non-government IPOs, driven by strong participation from local, regional, and global investors.
Initially, the retailer aimed to sell a 25% stake to raise up to $1.43 billion but expanded the IPO due to robust investor demand. All shares were fully subscribed within an hour of the books opening, making it the UAE’s largest IPO of the year, which surpassed NMDC Energy’s $877 million offering.
The offering is jointly coordinated by Abu Dhabi Commercial Bank PJSC, Citigroup Inc., Emirates NBD Capital, and HSBC Holdings Plc, with Moelis & Co. serving as the deal advisor.
At a Wednesday press conference in Abu Dhabi, founder Yusuff Ali announced that several Gulf Cooperation Council sovereign funds participated in the offering. Alongside global investors Vanguard and GIC, these included Saudi Arabia’s Public Investment Fund, Hassana, Qatar Investment Authority, and Kuwait Investment Authority.
Lulu Retail is the GCC’s largest full-line retailer, leading in retail space, sales, and store count, with a robust omnichannel presence across 240 stores in 6 countries. Among its strategic partners are Amazon, HungerStation, Snoonu, and Talabat.
The company plans to open around 90 stores across the Gulf over the next five years, focusing its expansion primarily on Saudi Arabia and the UAE.