UAE: Lulu IPO oversubscribed 25 times; shares priced at Dh2.04
As the largest initial public offering in the region so far in 2024 with gross proceeds of Dh6.32 billion, lulu Retail has assumed leadership in IPOs.
On November 2, Lulu Retail also announced the details of its shares price per each, effectively finalizing the expected price at the earlier announced price range which puts the valuation at Dh21.078 billion.
Lulu Retail IPO responds to an aggregate demand above Dh 135 billion with also notable over subscriptions of about twenty five times on the entire progression of the IPO.
The remaining amount offered to investors was Dh6.32 Billion. The preliminary assessment of Lulu Retail on shares pricing this past Monday topped 30 percent for its IPO. Lulu Retail will offer 3,098,671,605 as regards to its most recent offering which was set at Dh2.58 Billion.
The additional shares were also transacted through bonds without even looking at the first investor. These were skipped as the investors in this round were foreign investors.
Lulu Retail anticipates launching its shares on November 14 at the Abu Dhabi Securities Exchange.
The entire cornerstone investors’ overall undertakings reached over Dh1 billion ($273 million), with Emirates International Investment Company (EIIC) committed to a subscription of $100 million. The cornerstone investors’ shares are however subject to a 180 waiver lock period.
Lulu’s retail IPO is said to have attracted exceptional retail investor demand with more than 82,000 retail investors – a record of UAE IPO in the past 10 years.
“We also note the great enthusiasm shown by investors for the Lulu Retail IPO because it raised more than $1.72 billion and overall gross demand was around $37 billion, which means investors just like us are passionate about the company.”
“We expect to be rewarding trust placed in us by the investors in Lulu and are confident that our guidance has targets which we will achieve in 2024 and later,” said Saifee Rupawala who is the CEO of Lulu Retail.
Rupawala said, “We’re also very happy with these huge and record demand from UAE retail investors, more than 82,000 have subscribed for the shares.”
The last time shares were issued on the stock market for Dubai and Abu Dhabi, there was significant enthusiasm from both retail investors and institutional investors which led some of them to the decision of increasing the money they are to be making through share offerings.
Thousands of times, among the companies that exceeded the upper limits set – the utility service provider Dewa 37, Salik 49, Parkin 165 and Borouge 45.
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