Lulu Retail increases IPO offer size

Lulu Retail Holdings PLC has announced an increase in its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

The total offering size has now expanded to over 3 billion shares, up from the previously announced 2.58 billion shares. This increase means the offering now represents 30% of the company’s total issued shares, rather than the earlier figure of 25%.

The additional shares, totalling over 516 million, have been allocated specifically for the Qualified Investor Offering, which is open to professional investors only. The offer price remains unchanged, set between AED 1.94 and AED 2.04 per share.

If all shares are sold, the total size of the offering is now estimated to be between AED 6.01 billion and AED 6.32 billion. Based on this price range, Lulu Retail is projected to have a market capitalization of between AED 20.04 billion and AED 21.07 billion upon listing.

The final offer price will be determined through a book-building process, with an announcement expected on November 6. Lulu Retail shares are anticipated to begin trading on the ADX under the ticker symbol "LULU" on November 14.

Saifee Rupawala, CEO of Lulu Retail, expressed enthusiasm about the increased offering size, highlighting the company's strong presence in the GCC and the high demand from a diverse range of investors, including new cornerstone investors.