Lulu Retail boosts IPO size to 30 per cent amid high investor demand; Check

Lulu Retail Holdings has raised the size of its upcoming IPO to 30% from 25% due to significant interest from regional and foreign investors, potentially generating up to 6.32 billion dirhams ($1.72 billion).

Lulu Retail Holdings, operator of a major hypermarket chain in the Middle East, announced on Monday that it is increasing the size of its upcoming initial public offering (IPO) from 25% to 30% in response to strong interest from both foreign and regional investors.

This adjustment positions the IPO to be the largest in the UAE this year, potentially allowing the company to raise to 6.32 billion dirhams ($1.72 billion). Lulu plans to offer 3.098 billion shares within an unchanged indicative price range of 1.94-2.04 dirhams per share, with the final offer price expected to be revealed on November 6.

Lulu Retail announced that Masarrah Investment, an investment firm based in Saudi Arabia, will join as a new cornerstone investor, contributing approximately $68 million to the offering. With Masarrah's investment, the total commitments from all cornerstone investors—including the Abu Dhabi Pension Fund, Emirates International Investment Company (EIIC), and the sovereign wealth funds of Bahrain and Oman—now reach $273 million, the company stated.

According to Lulu Retail, the indicated price range suggests a market capitalization of approximately $5.46 billion to $5.74 billion upon its listing on the Abu Dhabi Securities Exchange, which is anticipated on November 14.