Lulu Retail seeks to raise up to $1.43 bn in biggest UAE IPO this year

Lulu Retail Holdings, which runs one of the Middle East's biggest hypermarket chains, is seeking to raise as much as 5.27 billion dirhams ($1.43 billion) in what is set to be UAE's biggest initial public offering so far this year.

The conglomerate, which runs more than 240 stores in the six countries belonging to the Gulf Cooperation Council (GCC), is offering 2.582 billion shares, equal to a 25% stake at an indicative price range of 1.94-2.04 dirhams per share, it said in a statement on Monday.

The UAE is experiencing a retail spending boom in the region that is spurring domestic listings by firms in the sector, including UAE-based Spinneys earlier this year.


The price range implies a market capitalization of between $5.46 billion-$5.74 billion at the listing on the Abu Dhabi Securities Exchange, which is expected on Nov. 14, Lulu Retail said.

Two sources involved in the IPO had previously told Reuters the offering could raise between $1.7 billion and $1.8 billion.