Lulu Retail Holdings, the operator of one of the Middle East’s largest hypermarket chains, successfully raised 6.32 billion dirhams (approximately $1.72 billion) in its initial public offering (IPO), marking the UAE’s largest listing of the year. The final share price was set at 2.04 dirhams ($0.5554), at the top end of the indicative price range.
Oversubscription and Record Demand
The IPO was oversubscribed by more than 25 times, reflecting overwhelming interest from local, regional, and global investors. The total demand exceeded AED 135 billion, setting a new record for a non-government IPO in the Middle East over the last decade, according to Lulu Retail Holdings.
Increased Offering Size
Given the exceptional demand, Lulu increased the size of its planned IPO to 30% from the initially planned 25%, accommodating the high levels of foreign and regional investor interest.
Lulu’s Position in the Market
Founded in 1974 by Indian businessman Yusuff Ali, Lulu Retail Holdings operates one of the most prominent hypermarket chains in the region. It joins other grocery retailers that have gone public amid a retail boom, including Spinneys (UAE) and BinDawood Holding (Saudi Arabia), both of which have listed in recent years.
Regional IPO Activity
The Gulf region has dominated IPO activity in the Middle East and North Africa (MENA) this year, accounting for the majority of the 30 IPOs in the region. These IPOs have collectively raised $5 billion in the first nine months of the year, according to LSEG data.
This successful IPO signals the growing strength of the retail sector in the Gulf region, as well as investor confidence in the Middle East’s economic outlook.
