Lulu Retail commenced trading on the Abu Dhabi Securities Exchange (ADX) on Thursday, following a record-breaking initial public offering (IPO). The IPO garnered gross proceeds of Dh6.32 billion, marking the largest offering in the UAE this year. A remarkable 82,000 retail investors subscribed for shares, with approximately 50,000 individuals registering at ADX within the 16-day window between the Lulu IPO announcement and the subscription closure. The retailer also attracted significant interest from a global investor base.

"Lulu’s inclusion in ADX’s expanding portfolio underscores the UAE's efforts in fostering a resilient, multi-sector economy," commented Ghannam Butti Almazrouei, chairman of ADX. The offering witnessed aggregate demand exceeding Dh135 billion from local, regional, and international investors, setting a record for a non-government UAE IPO over the past decade. It was oversubscribed by more than 25 times across all tranches. Prominent sovereign and institutional investors from the GCC were among the cornerstone investors.

Yusuffali M.A., chairman of Lulu Retail, acknowledged the pivotal role played by their thousands of employees in the hypermarket chain's success. "Our listing on ADX is a moment of immense pride for the entire Lulu team. Many of our 55,000 employees have been with us for decades, showing their dedication to serving our customers and growing our business. This milestone would not have been achievable without them," he stated.

Lulu's addition to the ADX boosts the exchange's market capitalization by AED 21 billion, according to Abdulla Salem Alnuaimi, group CEO of ADX. "At ADX, we are committed to introducing more impactful initiatives and innovative market solutions to foster a vibrant marketplace, expand investment opportunities for investors, and support the sustained success of our listed companies," he noted.

Lulu Retail’s growth strategy is anchored on four key pillars: enhancing its existing store network, expanding its store footprint, driving operational efficiencies, and increasing revenue through private label and loyalty program expansions. As the largest pan-GCC full-line retailer by selling space, sales, and number of stores in 2023, Lulu holds the top position in modern offline grocery retail in the GCC region, capturing a 13.5% share of the GCC modern offline grocery market in 2023. In 2023, Lulu was the second-largest grocery retailer in the UAE; the largest in Oman, Qatar, Bahrain, and Kuwait; and the fastest-growing and largest pan-GCC retailer in Saudi Arabia.

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