ABU DHABI: The size of the Lulu Group initial public offering (IPO) that remain open for subscription aiming to sell 25 per cent in Lulu Retail Holdings has been raised by another 5 percentage to 30 per cent, according to an official announcement from the company.
With this increase, the total shares being sold by Lulu International Holdings Ltd, the sole owner of Lulu Retail Holdings, through the IPO will go up to 3.098 billion (309.8 crore) shares from the earlier 2.58 billion (about 258 crore) shares.
The additional 516.45 million (51.65 crore) shares have been wholly allocated to the Qualified Investor Offering (Tranche Two), which are accessible to Professional Investors only, as defined in the Local Prospectus.
The change in the size of the IPO is possible while the issue is open. “If the demand is strong and if the cornerstone investors approach with their genuine demand, the size can be increased,” a top official from Lulu group in Abu Dhabi informed businessbenchmark.news responding to a query.
Masarrah, new cornerstone investor
Lulu Retail also announces today the addition of Masarrah Investment Company as a Cornerstone Investor.
The previously announced Cornerstone Investors are (i) Abu Dhabi Pension Fund (ADPF), (ii) Bahrain Mumtalakat Holding Company Co. (Mumtalakat), (iii) Emirates International Investment Company LLC (EIIC) and (iv) Oman Investment Authority (OIA).
Offer size likely to be AED6.32bn
However, the Offer Price range is unchanged at between AED 1.94 and AED 2.04 per share.
Assuming all the shares offered are sold, the total size of the Offering has been revised to between AED6.01 billion (c. $1.64 billion) and AED6.32 billion (c. $1.72 billion).
Market cap
Based on the new Offer Price Range, Lulu Retail is set to list with a market capitalisation between AED20.04 billion (c. $5.46 billion) and AED21.07 billion (c. $5.74 billion).
The final offer price will be determined through a book building process and is expected to be announced on November 6, 2024. Saifee Rupawala, Chief Executive Officer (CEO) of Lulu Retail, said the established pan-GCC presence of Lulu Retail and the group’s clear strategy for growth has attracted a highly diverse investor base.
“We’re pleased to increase the total size of the Offering to cater to the significant level of demand received from international, regional and local investors, and the inclusion of additional cornerstone investors to the IPO,” he said.
