“She said”Lulu Retail“In a statement, period Underwriting It begins Monday, and is expected to close on Tuesday, November 5, 2024 for UAE retail investors, qualified executives and professional investors.
The price range for the offering shares was set between 1.94 and 2.04 UAE dirhams per share. Which means that the value of the shares will be between 5.1 billion dirhams (about $1.36 billion) and 5.27 billion dirhams (about $1.43 billion), assuming that all the shares offered are sold.
According to the price range of the offering shares, the market value of Lulu Retail upon listing will range between 20.04 billion dirhams (about 5.46 billion dollars) and 21.07 billion dirhams (about 5.74 billion dollars).
A total of approximately 2.6 billion ordinary shares, representing 25 percent of the total issued shares in the company’s capital, will be sold by the company’s sole shareholder, Lulu International Holding Company Limited.
The final offering price will be determined through the price construction process, and is expected to be announced on Wednesday, November 6, 2024.
The company also strives to maintain a total dividend rate of 75% of the annual distributable profits after deducting taxes, paid semi-annually, provided that the company’s dividend distribution policy is adhered to. The company aims to pay dividends for the six months ending December 31, 2024 in the first half of 2025.
The Shares are expected to be accepted for trading on the Abu Dhabi Securities Exchange (“Shares Admission”) on Thursday, November 14, 2024.
For his part, Saifuddin Rupawala, CEO and member of the Board of Directors, said: “We are pleased to announce the start of the subscription period for the initial public offering of Lulu Retail, which represents a major achievement in the company’s successful journey. This public offering represents a unique opportunity for local and international investors to participate in the growth of The largest retailer in the GCC countries in terms of market share and the fastest growing company on a large scale in the Kingdom of Saudi Arabia, Lulu serves more than 600,000 shoppers daily through our group of multiple stores in all GCC markets, which provides a wide range of products that meet the needs of customers. All our customers’ diverse requirements. We expect continued strong economic growth in our six markets driven by population growth and positive consumer trends. We will continue to invest in our business to enhance growth and customer loyalty across our existing network of 240 stores and open new stores, enhance our operational efficiencies, and grow our branded product portfolio. Own and develop our online business and e-commerce platforms, and we are confident in our ability to achieve our guiding goals in 2024 and beyond. The price range for the offering shares reflects our desire to prioritize strong market performance post-listing and welcome new shareholders to join us in Lulu’s success journey and our enthusiasm for the future.”
Core investors
On October 28, 2024, the Company and the Selling Shareholder entered into basic investment agreements with (1) Abu Dhabi Retirement Fund, (2) Bahrain Mumtalakat Holding Company BSC, (3) Emirates International Investment Company, and (4) Oman Investment Authority ( Anchor Investors), whereby the Anchor Investors committed individually (and not jointly or jointly and severally) to purchase the Offering Shares within the Professional Investor segment at the final Offering Price. The cornerstone investors also committed to paying approximately 753 million UAE dirhams (205 million US dollars) in the IPO, of which Emirates International Investment Company committed to subscribe for 100 million US dollars, with the shares of each of them subject to a lock-up period of 180 days after acceptance of the listing.
Abu Dhabi Retirement Fund A public institution with an independent legal personality, established in 2000 to manage retirement contributions, pensions and end-of-service benefits for Emirati citizens working or retired from the government and private sectors and beneficiaries of pensions in the Emirate. Abu Dhabi.
Bahrain Mumtalakat Holding Company BSC (c) (“Mumtalakat”) invests in Lulu Retail through its subsidiary Marsat W.L.L. Mumtalakat represents the sovereign wealth fund of the Kingdom of Bahrain and was established with the aim of increasing the country’s wealth through long-term investments. Mumtalakat owns stakes in more than 50 commercial companies, with a diversified portfolio across sectors such as manufacturing, financial services, telecommunications, real estate, logistics, consumer products, healthcare and education.
Emirates International Investment Company is the strategic investment arm of the Abu Dhabi-based National Holding Company and has strategic investments in leading sectors in the UAE and the Middle East and North Africa region. Since the early 1990s, Emirates International Investment Company has been an important investor in the Middle East and North Africa region and globally, as it has made long-term strategic investments in a number of regional and international companies, such as Abu Dhabi Islamic Bank, Abu Dhabi Islamic Bank – Egypt, Modon Holding, and Abu Dhabi. National Hotels. Emirates International Investment Company may transfer any of the shares purchased through this initial public offering to any of its subsidiaries, and such transferred shares will remain subject to a lock-up period of 180 days.
The Oman Investment Authority is the investment arm of the Sultanate of Oman, and was established pursuant to Royal Decree No. 61/2020. The Sovereign Wealth Fund operates as an independent legal body that enjoys complete financial and administrative independence, and reports directly to the Council of Ministers. Its primary objectives include managing, developing and investing the funds and assets of the Sultanate of Oman in order to achieve the greatest possible returns.
Underwriting process
As previously announced, the subscription process is open to the following subscribers:
• First Tranche: A public offering (the “UAE Retail Offering”) to individual investors and other investors in the UAE (as defined in the UAE Prospectus) including eligible Group employees (as defined in the UAE Subscription Prospectus). Described in the prospectus for the subscription in the United Arab Emirates).
• The second tranche: an offering to professional investors (as defined in the Chairman of the Board of Directors of the Securities and Commodities Authority Resolution No. 13/R.M of 2021 (as amended)), as specified in the prospectus in the United Arab Emirates and they are referred to as the subscribers of “ Qualified investors.
• The third tranche: an offer to senior qualified executives in the group (as specified in the prospectus). Underwriting In a country The UAE United Arab Emirates) and is referred to as the “Senior Executive Offering”.
The subscription period begins today and ends on Tuesday, November 5, 2024, for individual investors in the United Arab Emirates, qualified executives, and professional investors.
It is currently expected that the subscription process and acceptance of subscriptions for shares will be completed on or about Thursday, November 14, 2024, subject to market conditions and upon obtaining the relevant regulatory approvals in the United Arab Emirates, including approval for acceptance of subscriptions for the offering and trading of shares in Abu Dhabi Securities Market.
In accordance with the terms of the Underwriting Agreement to be entered into between the Company, the Selling Shareholder and the Joint Bookrunners prior to the Listing (the “Covering Undertaking Agreement”), the Shares held by the Selling Shareholder will be subject to a lock-up period for a period beginning on the Listing Date and ending 180 calendar days after the Listing Date (the “Listing Period”). ban”). The company is also subject to the ban period as described in the prospectus.
The details of the offering are included in a subscription prospectus issued in the Arabic language (“the Offering Circular in the United Arab Emirates”) and the public offering announcement (“the Public Announcement”) in relation to the Offering to individual subscribers in the United Arab Emirates. As for the Offering to qualified investors, the details will be published in International Offering Memorandum in English (“International Offering Memorandum”).
Mullis & Company UK Limited Liability Partnership (DIFC Branch) has been appointed as the independent financial advisor.
Abu Dhabi Commercial Bank, Citigroup Global Markets Limited, Emirates NBD Capital and HSBC Bank Middle East Limited have been appointed as global coordinators and joint bookrunners. Al Rajhi Capital, EFG Hermes UAE LLC (jointly with EFG Hermes UAE LLC), First Abu Dhabi Bank, Goldman Sachs International and International Securities Limited have been appointed as joint bookrunners for the offering.
Abu Dhabi Commercial Bank, EFG Hermes UAE, Emirates NBD Capital, First Abu Dhabi Bank and HSBC Bank Middle East Limited have been appointed as joint lead managers.
Abu Dhabi Commercial Bank PJSC and First Abu Dhabi Bank PJSC have been appointed as the lead receiving banks. Al Mariah Local Bank PJSC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, Emirates NBD Bank PJSC, Mashreq Bank PJSC, and U Bank PJSC were also appointed. As banks receiving subscriptions.
Bank Sohar International SAOG, Gulf Bank (K.S.C.P.), National Investments Company K.S.C.P., and SICO B.S.C. (C) were appointed. As joint banks.
Neither HSBC Bank Middle East Limited nor any of its affiliates is involved in the marketing or management of any aspect of the offering to retail investors in the UAE for natural persons.
