LuLu’s $1.43 billion IPO sells out in an hour

TDT | Manama                                                      

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LuLu Retail Holdings Plc experienced significant demand for its initial public offering (IPO) of 5.27 billion dirhams ($1.43 billion), with interest surging just one hour after the books opened.

According to terms of the deal reported by Bloomberg, demand exceeded the number of shares available. This IPO is set to become the largest listing in the United Arab Emirates this year, surpassing NMDC Energy’s $877 million share offering.

The retailer has set a price range of AED 1.94 to AED 2.04 per share for the shares listed on the Abu Dhabi Securities Exchange (ADX).

Subscription is open until November 5 for retail investors, company employees, and professional investors.

Earlier reports said the initial share sale includes 2,582,226,338 shares, representing 25% of the company’s total issued shares, and is being sold by its shareholder, LuLu International Holdings Ltd.

Additionally, LuLu Retail has secured cornerstone investments from Bahrain Mumtalakat Holding Company, the Abu Dhabi Pension Fund, Oman Investment Authority, and the Emirates International Investment Company.

Cornerstone investors commit to purchasing shares before the listing takes place.