25% of Lulu’s Shares to be Offered on Abu Dhabi Stock Exchange for $1.8 Billion Starting October 28

Lulu Group has announced its intention to offer 2.582 billion shares on the Abu Dhabi Securities Exchange, a move considered by analysts as the largest public offering in the UAE this year.

Extensive Presence of Lulu in the Gulf Region

This offering is conducted by the Lulu Group, which operates over 240 stores across the countries of the Gulf Cooperation Council. The aim is to encourage local companies to list their shares in the domestic market. The subscription period for shares will start on October 28 and continue until November 5, with trading of shares beginning on November 14 on the Abu Dhabi Stock Exchange.

Financial Objectives and Dividend Distribution of the Offering

According to the initial public offering (IPO) documents, this offering could generate revenue between $1.7 billion and $1.8 billion from the sale of 25% of the company’s shares. Lulu has stated that 75% of its annual net profit after tax will be distributed as dividends to shareholders, with dividend payments occurring twice a year.

Revenue Growth and Expansion of Sales Network

Lulu’s revenue in the first half of this year reached $3.9 billion, indicating a 5.6% year-on-year growth. The annual revenue for 2023 also reached $7.3 billion, reflecting similar growth. This increase in revenue is attributed to the growth in sales from existing stores, expansion of the store network, and an increase in online sales.

Strong Financial Performance and Leading Position in the Region

Lulu’s operating profit in the first half of 2024 was approximately $391 million, marking a 4.3% increase compared to the previous year, and the operating profit for 2023 rose by 7.2% to $753 million. According to market experts, Lulu was the largest retail store in the Gulf region in terms of sales area, sales volume, and number of stores in 2023, and it also ranked first in food sales in the UAE, Oman, Qatar, Bahrain, and Kuwait.

Statement from Lulu’s Founder Youssef Ali on the IPO

Youssef Ali, the founder and Chairman of Lulu, commented on the IPO, saying: “Lulu, as a well-known brand in the retail sector in the countries of the Gulf Cooperation Council, is proud to announce the launch of our initial public offering and share this event with our customers and investors.”