UAE retail giant Lulu, owned by Indian businessman MA Yussuf Ali will sell 2.58 billion shares representing 25 percent of its stake through a three-tranche initial public offering in the Abu Dhabi Securities Exchange, beginning from October 28 and close on November 5. 

According to a press statement, the announcement of the final offering price will be on November 6, while the expected date of listing the shares on the ADX is November 14. 

The statement added that a percentage of the shares will be allocated to existing employees in Lulu. 

Yussuf Ali Shares Excitement

According to the media release, the company is targeting a total dividend pay-out ratio of 75 percent of annual distributable profits after tax, paid semi-annually. 

"It's with immense pride that we announce the planned IPO of Lulu Retail on ADX, bringing to market the largest pan-GCC full-line retailer by selling space, sales and number of stores. We founded Lulu in 1974 with the ambition to introduce and embed organized retail in the UAE and a commitment to create a shopping experience that customers would love and remain loyal to," said Yussuf Ali, founder and chairman of Lulu Retail. 

He added: "We have exceeded our own expectations and today Lulu operates more than 240 stores across six GCC countries, delivering immense value every day for new and loyal customers. Integral to our growth is the vision and ambition of the UAE, KSA and the other GCC nations where strong national leadership is enabling positive demographic and consumption trends and driving impressive economic growth." 

Lulu has appointed Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank and Citigroup as the joint book runners for the offering, while Moelis & Co. retained as Financial Advisors.

Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank Middle East and EFG Hermes are joint lead managers, the press statement added. 

"Lulu is a brand synonymous with retail in the GCC and we're incredibly proud to launch our IPO today. Over the past 50 years, we have grown from one store in Abu Dhabi to the largest pan-GCC retailer by market share and the fastest-growing player of scale in the Kingdom of Saudi Arabia," said Saifee Rupawala, CEO of Lulu Retail.

Lulu Group's Expansion in India Continues

Amid the IPO plans, Lulu Group continues to expand its operations in India, with the film recently announcing an investment of $480 million to develop a shopping mall in Ahmedabad. 

Touted to be the biggest of its kind in the nation, the upcoming shopping mall in Ahmedabad is expected to create over 3,000 jobs, according to Yussuf Ali. 

In September 2023, Ali said that the company is actively continuing its expansion in India by developing shopping malls and luxury hotels. 

"We are going to construct one of the largest shopping malls in Ahmedabad and Chennai. Also, we are going to different states for shopping malls and food processing," said Ali.