Lulu sets the price range for its offering between 1.94 and 2.04 dirhams per share

Lulu Retail Holding PLC announced yesterday the price range for selling its shares and the start of the subscription period for its initial public offering on the Abu Dhabi Securities Market. The company stated, in a statement, that the subscription period that began yesterday, Tuesday, November 5, 2024, is expected to close for individual investors in the UAE, qualified executives, and professional investors.

The price range for the offering shares was set between 1.94 and 2.04 dirhams per share, which means that the value of the shares will be between 5.1 billion dirhams and 5.27 billion dirhams, assuming the sale of all the shares offered.

According to the price range of the offering shares, the market value of Lulu Retail upon listing will range between 20.04 billion dirhams and 21.07 billion dirhams.

A total of 2.582 billion ordinary shares, representing 25% of the total issued shares in the company’s capital, will be sold by the company’s sole shareholder, Lulu International Holding Limited.

The final offering price will be determined through the price construction process, which is expected to be announced on the 6th of next November, while the shares are expected to be accepted for trading on the Abu Dhabi Securities Market on Thursday, the 14th of November.

The company seeks to maintain a total dividend rate of 75% of the annual distributable profits after deducting taxes, paid semi-annually, provided that the company’s dividend distribution policy is adhered to. The company aims to pay dividends for the six months ending December 31, 2024 in the first half of 2025.

CEO and member of the Board of Directors, Saifuddin Rupawala, said that this public offering represents a unique opportunity for local and international investors to participate in the growth of the largest retailer in the Gulf Cooperation Council countries in terms of market share, and the fastest growing company on a large scale in Saudi Arabia, pointing out that “ Lulu provides its services to more than 600,000 shoppers daily through its stores in the GCC markets.