Lulu Retail Holdings made its debut on the Abu Dhabi Securities Exchange (ADX) on Thursday, following a $1.72 billion initial public offering (IPO). Trading under the ticker symbol 'LULU,' the retail giant saw a 1.96% decline to Dh2 per share in afternoon trading, after opening at Dh2.04. By 1:40 PM UAE time, it had become the most traded stock on ADX, with 203.92 million shares exchanged.
The IPO attracted aggregate demand exceeding Dh135 billion from local, regional, and international investors, setting a record for a non-government UAE IPO over the past decade. The offering was oversubscribed by more than 25 times across all tranches (excluding cornerstone investors), with cornerstone investors including prominent sovereign and institutional investors from the GCC.
A record 82,000 retail investors subscribed to the IPO, highlighting the strong consumer connection with the Lulu brand across the GCC. Approximately 50,000 individuals registered for an ADX National Investor Number (NIN) in the sixteen days between Lulu's announcement and the close of subscriptions, compared to 50,000 NINs issued throughout the entire 2023 calendar year.
Ghannam Butti Almazrouei, chairman of ADX, emphasized that Lulu's successful listing underscores the UAE's economic resilience and dynamism, enhancing ADX's diversified sector offerings and paving the way for more consumer and retail issuers. He noted that Lulu's addition to ADX's portfolio reflects the UAE's efforts to build a robust, multi-sector economy.
Yusuffali M.A., chairman of Lulu Retail, expressed pride in the listing, acknowledging the dedication of the company's 55,000 employees. He highlighted the support of regional leaders in driving the growth and success of businesses like Lulu.
Abdulla Salem Alnuaimi, group CEO of ADX, highlighted Lulu's landmark achievement as the largest private sector IPO for a home-grown company in the UAE, adding Dh 21 billion to ADX's market capitalization. Saifee Rupawala, CEO of Lulu Retail, emphasized the company's commitment to exceptional service and product delivery, with plans to open 16 new stores this year and expand the store network and customer base across the region.
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