IPO flies off Lulu shelves, Group to raise Rs 12,000 crore

Lulu Retail Holdings, whose initial public offering (IPO) was subscribed within one hour of opening in Abu Dhabi on Monday, aims to raise 5.27 billion dirhams ($1.43 billion, or, around 12,000 crore rupees) in UAE's biggest IPO so far this year.

The conglomerate, which runs one of the Middle East's biggest hypermarket chains with more than 240 grocery stores in six Gulf countries, is offering 2.582 billion shares, equal to a 25% stake at an indicative price range of 1.94-2.04 dirhams per share, the company said in a statement.

Oversubscribed

Books were covered multiple times within hours of opening as demand from investors exceeded the overall deal size of the Yusuff Ali-led Lulu Retail Holdings.

Lulu Retail said cornerstone investors that had individually committed to subscribing to the offering included Abu Dhabi Pension Fund, the Emirates International Investment Company (EEIC) and the sovereign wealth funds of Bahrain and Oman. They will invest about $205 million in total, it added.

The price range implies a market capitalisation 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.