LuLu Retail has made history by securing Dh6.32 billion in the UAE’s largest IPO of 2024. It has marked a significant milestone for the Abu Dhabi-based hypermarket chain.
The shares were priced at Dh2.04 each, generating an astonishing demand that exceeded Dh135 billion (approximately $37 billion) from a wide array of local, regional, and international investors. This remarkable interest has made it the most successful non-government IPO in the UAE over the last ten years.
There are subscriptions surpassing 25 times the available shares across different tranches, not including cornerstone investors. With a share price of Dh2.04, LuLu Retail’s market capitalization stands at Dh21.07 billion ($5.74 billion). It is highlighting its strong position within the retail industry.
The IPO’s success is not only reflected in its financial achievements but also in the unprecedented level of retail investor engagement. More than 82,000 retail investors participated, the highest recorded in a UAE IPO in the past decade. This enthusiastic response showcases the public’s confidence and excitement regarding LuLu Retail’s future growth and expansion initiatives.
Analysts suggest that LuLu’s impressive performance signifies more than just financial success. It points to a flourishing retail sector in the UAE, driven by increasing consumer confidence and a positive outlook for business growth.
LuLu Group, which operates numerous hypermarkets across various regions, plans to utilize the IPO funds to accelerate its expansion efforts. It is particularly true for key markets throughout the Middle East and Asia.
Additionally, part of the capital will likely be invested in enhancing digital infrastructure to improve both online and in-store customer experiences. The unprecedented success of this IPO is anticipated to pave the way for future listings in the UAE.
This success is contributing to a more vibrant stock market landscape. By drawing interest from both local and international investors, LuLu Retail’s achievement is set to inspire further growth in the region’s financial markets.
