(Nov 6): Hypermarket chain operator Lulu Retail Holdings plc raised US$1.72 billion (RM7.49 billion) from its Abu Dhabi initial public offering (IPO), marking the largest listing in the United Arab Emirates (UAE) this year.
 
Lulu International Holdings sold 3.1 billion shares, or a 30% stake, at 2.04 dirhams (RM2.42) apiece, the top of the marketed range, according to a statement. The deal attracted demand worth 135 billion dirhams. 

The retailer had initially planned to sell a 25% stake and raise up to US$1.43 billion, but increased the shares on offer on Monday, citing strong regional and international investor interest.

Lulu secured cornerstone investments from Saudi Arabia’s Masarrah Investment Co, Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding Company Co, Emirates International Investment Co, and Oman Investment Authority who bought shares worth just over one billion dirhams. 

The deal had demand for all shares on offer an hour after books opened last week. The listing eclipses oil services firm NMDC Energy’s US$877 million offering.

Lulu’s IPO marks the latest in a series of private sector listings across the Middle East, offering investors a broader choice beyond state-owned assets. Delivery Hero SE’s Middle Eastern unit Talabat and IT services firm Alpha Data are also planning listings in the UAE this year.

High-end supermarket chain Spinneys 1961 Holding plc raised US$374 million from a Dubai listing in May, though the stock had a relatively muted debut and its shares continue to trade around the offer price. 

Lulu — founded by Indian entrepreneur Yusuff Ali — plans to open about 90 stores across the Gulf over the next five years, with Saudi Arabia and the UAE slated as its main expansion markets.

Lulu’s shares are set to start trading on Nov 14. Abu Dhabi Commercial Bank PJSC, Citigroup Inc, Emirates NBD Capital and HSBC Holdings plc are the joint global coordinators on the offering. Moelis & Co is an advisor on the deal.

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