UAE: LuLu Retail increases IPO offer size to 30% on high demand

Masarrah Investment Company, a Saudi Arabia-based investor, has been announced as a new cornerstone investor.

United Arab Emirates (UAE) retail giant LuLu Retail on Monday, November 4, increased its initial public offering (IPO) size from 25 percent to 30 percent to cater to high demand from global investors.

The total offering size has risen from the previously announced over 2.58 billion ordinary shares to over 3.09 billion shares, Lulu International Holdings said.

The additional 516 million shares allocated to the qualified investor offering (Tranche Two), exclusively for professional investors.

The company’s price range remains unchanged at Dirham 1.94 to Dirham 2.04 per share, with plans to raise between Dirham 6.01 billion and Dirham 6.32 billion.

Saifee Rupawala, CEO 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.”

The final offer price will be determined through a book-building process and is expected to be announced on Wednesday, November 6. The company is set to commence trading on the Abu Dhabi Securities Exchange (ADX) on Thursday, November 14.

Masarrah Investment Company, a Saudi Arabia-based investor, has been announced as a new cornerstone investor in the retail giant’s IPO. It will be investing Dirham 250 million and the total commitments of all cornerstone investors amount to approximately Dirham 1 billion.