Lulu Retail announces an increase in the size of its initial public offering to 3.1 billion shares

Lulu Retail Holding PLC announced an increase in the size of its initial public offering from 2,582.2 million shares to 3,098.7 million shares, equivalent to 30% of its total capital (25% previously).

The company explained in a press statement issued today that the additional shares amounting to 516.4 million shares were fully allocated to the segment of qualified investors (the second tranche).

It confirmed that the price range for the offering shares remains unchanged, ranging between 1.94 dirhams and 2.04 dirhams per share.

She indicated that if all the shares offered for public subscription were sold, the total size of the public offering would have been adjusted to be between 6.01 billion dirhams (about 1.64 billion dollars) and 6.32 billion dirhams (about 1.72 billion dollars).

According to the price range of the offering shares, the market value of Lulu Retail upon listing will range between 20.04 billion dirhams (about 5.46 billion US dollars) and 21.07 billion dirhams (about 5.74 billion dollars).

The final offering price will be determined through a book-building process, and is expected to be announced on Wednesday, November 6, 2024.

The subscription period for Lulu Retail Company shares began on Monday, October 28, 2024, by offering 25% of its capital, distributed into three tranches, one of which was for individuals, and 10% of the shares offered were allocated to it, compared to 89% for professional investors, and 1 %, to the company’s senior executives.

The subscription period will end tomorrow, Tuesday, November 5, 2024, for all tranches, while the company is expected to be accepted for listing and begin trading on the Abu Dhabi Securities Market on November 14, 2024.

Lulu Retail Company also announced today that Masarra Investment Company, which operates in the field of investment in Saudi Arabia, has joined the list of primary investors, which includes: Abu Dhabi Retirement Fund, Bahrain Mumtalakat Holding Company, Emirates International Investment Company, and the Oman Investment Authority.

She indicated that Masarra Investment Company agreed to invest about 250 million dirhams (about 68 million dollars), while the total obligations of all major investors under the basic investment agreements amount to about 1,003 million dirhams (equivalent to 273 million dollars), with the shares of each of them subject to a period 180-day ban after listing acceptance.