Lulu IPO ends with 25X oversubscription, becomes largest IPO in UAE this year

Lulu Retail announced on Wednesday that its initial public offering (IPO) was oversubscribed 25 times across all tranches, excluding cornerstone investors, generating demand exceeding $37 billion—a record for a private sector IPO in the United Arab Emirates.

The company is controlled by Kerala-based business tycoon MA Yusuff Ali.

The final offer price for Lulu shares was set at AED 2.04 per share, raising a total of $1.72 billion (AED 6.32 billion), making it the largest IPO in the UAE in 2024 to date.

Lulu Retail’s shares will begin trading on the Abu Dhabi Securities Exchange (ADX) on November 14.

The Lulu IPO received exceptional investor interest and was oversubscribed within just one hour of opening on October 28.

In response to the high demand from foreign and regional investors, Lulu Group increased the IPO size from 25 per cent to 30 per cent to accommodate a broader range of participants.

“We are deeply grateful for the overwhelming support we have received from investors across the GCC and beyond,” said Yusuff Ali.

“This IPO marks a new chapter in our journey as the region’s largest full-line retailer.

"We are also immensely grateful to the visionary leadership of the UAE and the GCC for their continued support and encouragement," he added.

The success of the Lulu IPO highlights the growing interest in the UAE’s capital markets, with many first-time investors participating in the offering.

Key investors include the Abu Dhabi Pension Fund, Emirates International Investment Company, Bahrain Mumtalakat Holding Company, Oman Investment Authority, Kuwait Investment Authority, Qatar Investment Authority, Saudi Public Investment Fund, Hassana Pension Fund, and the Singapore Sovereign Wealth Fund, among others.

Lulu operates more than 240 hypermarkets, express, and mini-market stores across the six Gulf Cooperation Council (GCC) countries, spanning over 1.3 million sq. m of retail space.

It also has a growing e-commerce presence through its app, webstore, and partner channels.

To serve more than 600,000 shoppers from 130 nationalities daily, it sources products from 85 countries, supported by sourcing teams in 19 countries.