UAE supermarket chain Lulu to offer 25% stake in IPO in Adx listing

Lulu IPO in UAE: United Arab Emirates' Lulu Retail Holdings, which runs one of Middle East's biggest hypermarket chains, said on Monday that it plans to sell a 25 per cent stake in its initial public offering.

Lulu plans to offer more than 2.582 billion shares in IPO , which will run from Oct. 28 to Nov. 5, according to its intention to float document.

Founded in 1974 by Indian businessman Yusuff Ali, retail conglomerate operates more than 240 stores across six GCC (Gulf Cooperation Council) countries.

Reuters reported in 2022 that Lulu was looking at an IPO and h hired investment bank Moelis & Co as an visor.

stock is expected to start tring on Abu Dhabi Securities Exchange on Nov. 14, according to IPO document.

Lulu said it aims to maintain a total dividend payout ratio of 75 per cent of annual distributable profits after tax, and to make payout twice a year, subject to relevant parameters.

Lulu joins or grocer firms in Middle East that have sought IPOS, such as offering earlier this year of UAE-based Spinneys and Saudi grocery retailer BinDawood Holding in 2020.

Saudi Arabia's Savola Group said in February this year that it plans to list its grocer subsidiary Panda Retail, while kingdom's wealth fund last year acquired a 30 per cent stake in Tamimi Markets ahe of supermarket chain's planned IPO .