Lulu Retail Holdings, the largest and fastest growing pan-GCC full-line retailer and a public company limited by shares incorporated in the Abu Dhabi Global Market (ADGM), today announced an increase in the size of its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

 

The total Offering size has been increased to 3,098,671,605 ordinary shares from the previously announced 2,582,226,338 ordinary shares. The offering size now represents 30% (previously 25%) of the total issued shares in the company, which are to be sold by the company’s sole shareholder, Lulu International Holdings Limited (the selling shareholder). 

 

The additional 516,445,267 offer shares have been wholly allocated to the Qualified Investor Offering (Tranche Two), accessible to Professional Investors only, as defined in the local prospectus.

 

The offer price range is unchanged at between AED1.94 and AED2.04 per share. Assuming all the shares offered are sold, the total size of the offering has been revised to between AED6.01 billion ($1.64 billion) and AED6.32 billion ($1.72 billion). 

 

Based on the offer price range, Lulu Retail is set to list with a market capitalisation of between AED20.04 billion ($5.46 billion) and AED21.07 billion ($5.74 billion), the group said.

 

The final offer price will be determined through a book building process and is expected to be announced on Wednesday.

 

Saifee Rupawala, Chief Executive Officer of Lulu Retail, said: “The established pan-GCC presence of Lulu Retail and our clear strategy for growth has attracted a highly diverse investor base, and we’re pleased to increase the total size of the Offering to cater to the significant level of demand received from international, regional and local investors, and the inclusion of additional cornerstone investors to the IPO.” 

 

ADDITIONAL CORNERSTONE INVESTOR

Lulu Retail also announced today the addition of Masarrah Investment Company as a Cornerstone Investor, joining the previously announced Cornerstone Investors (i) Abu Dhabi Pension Fund (ADPF), (ii) Bahrain Mumtalakat Holding Company, (iii) Emirates International Investment Company (EIIC) and (iv) Oman Investment Authority (OIA).

 

Masarrah Invest, a leading investment holding company in Saudi Arabia, has over 70 years of experience fostering public and private sector partnerships. Founded by Sh Mutlaq Almutlaq and led by Managing Director Tariq Almutlaq, the company focuses on talent equity, strong governance, stakeholder value, innovation, and credibility. 

 

Masarrah Invest has diversified investments in sectors like agro specialty chemicals, plastics, real estate, power and water, industrial gases, logistics, district cooling, recycling, and social infrastructure. 

 

Aligned with Saudi Arabia’s Vision 2030, Masarrah Invest is expanding its partnerships within the Gulf Cooperation Council and globally to capture new opportunities. With a firm commitment to sustainability and impactful investments, Masarrah Invest continues to play a significant role in Saudi Arabia’s economic development, focused on innovative and strategic growth.

 

Masarrah Invest has agreed to invest approximately AED250 million ($68 million). The aggregate commitments of all the Cornerstone Investors pursuant to the Cornerstone Investor Agreements are approximately AED1,003 million ($273 million), of which EIIC has committed to subscribe to $100 million, with the Cornerstone Investors’ Shares being subject to a 180-day lock-up arrangement, following listing, the group said.  -TradeArabia News Service