Grocer Lulu Raises $1.72 Billion in UAE’s Largest IPO This Year - Bloomberg
Hypermarket chain operator Lulu Retail Holdings Plc’s $1.72 billion Abu Dhabi initial public offering drew orders worth $37 billion, including from global investors Vanguard Group Inc. and Singapore sovereign wealth fund GIC Pte.
Lulu International Holdings sold 3.10 billion shares, or a 30% stake, at 2.04 dirhams ($0.56) apiece, the top of a marketed range. Based on that offer price, the firm will have a market capitalization of 21.1 billion dirhams when it lists on Nov. 14.
Apart from Vanguard and GIC, sovereign entities from Gulf Cooperation Council countries — including Saudi Arabia’s Public Investment Fund and Hassana, Qatar Investment Authority and Kuwait Investment Authority — invested in the offer, founder Yusuff Ali said at a press conference in Abu Dhabi Wednesday.
Lulu previously said it had secured commitments from Saudi Arabia’s Masarrah Investment Co., Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding, Emirates International Investment Co., and Oman Investment Authority. Those funds bought shares worth just over 1 billion dirhams.
The retailer initially planned to sell a 25% stake and raise up to $1.43 billion, but increased the size of the IPO, citing strong investor interest. The deal had demand for all shares an hour after books opened last week, eclipsing oil services firm NMDC Energy’s $877 million offering as United Arab Emirates’ biggest IPO of the year.
The IPO marks the latest in a series of private sector listings across the Middle East, offering investors a broader choice beyond state-owned assets. Delivery Hero SE’s Middle Eastern unit Talabat and IT services firm Alpha Data are also planning listings in the UAE this year.
High-end supermarket chain Spinneys 1961 Holding Plc raised $374 million from a Dubai listing in May, though the stock had a relatively muted debut and continues to trade around the offer price.
Lulu plans to open about 90 stores across the Gulf over the next five years, with Saudi Arabia and the UAE slated as its main expansion markets.
Abu Dhabi Commercial Bank PJSC, Citigroup Inc., Emirates NBD Capital and HSBC Holdings Plc are the joint global coordinators on the offering. Moelis & Co. is an advisor on the deal.
Wednesday 6 November 2024
Most Gulf markets gain on Trump's presidential win | Reuters
Most Gulf markets gain on Trump's presidential win | Reuters
Most stock markets in the Gulf ended higher on Wednesday as a win by Republican Donald Trump in the U.S. presidential election fuelled expectations of more business-friendly policies, analysts said.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.7%, Dubai's main share index (.DFMGI), opens new tab added 0.5% and in Abu Dhabi, the index (.FTFADGI), opens new tab added 0.4%.
"Analysts noted that these market moves align with investor expectations of a Trump administration’s economic approach, prioritising reduced regulatory pressures and trade policy changes," Mohamed Hashad, chief market strategist, at Noor Capital said.
Saudi's Al Rajhi Bank (1120.SE), opens new tab rose 2.3% and Saudi Arabian Mining Company (1211.SE), opens new tab closed 4.1% higher, while Saudi Electricity Co (5110.SE), opens new tab jumped 6.3%, following a steep rise in quarterly net profit.
The biggest mover in Dubai was toll operator Salik Company (SALIK.DU), opens new tab, which gained 2.5%, while sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab gained 1.2%, a day after reporting a rise in third-quarter profit.
In Abu Dhabi, conglomerate International Holding (IHC.AD), opens new tab rose 0.8% ahead of its earnings announcement.
However, crude prices - a catalyst for the Gulf's financial markets - fell as the U.S. dollar rallied on Trump's win.
Investors believe a Trump presidency will bolster the dollar as interest rates may need to remain high to combat inflation resulting from any new tariffs.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.8%, with Fawry For Banking Technology Electronic Payments (FWRY.CA), opens new tab rising 3.2%.
Egypt's net foreign reserves rose to $46.942 billion in October from $46.737 billion in September, the central bank said on Wednesday.
Most stock markets in the Gulf ended higher on Wednesday as a win by Republican Donald Trump in the U.S. presidential election fuelled expectations of more business-friendly policies, analysts said.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.7%, Dubai's main share index (.DFMGI), opens new tab added 0.5% and in Abu Dhabi, the index (.FTFADGI), opens new tab added 0.4%.
"Analysts noted that these market moves align with investor expectations of a Trump administration’s economic approach, prioritising reduced regulatory pressures and trade policy changes," Mohamed Hashad, chief market strategist, at Noor Capital said.
Saudi's Al Rajhi Bank (1120.SE), opens new tab rose 2.3% and Saudi Arabian Mining Company (1211.SE), opens new tab closed 4.1% higher, while Saudi Electricity Co (5110.SE), opens new tab jumped 6.3%, following a steep rise in quarterly net profit.
The biggest mover in Dubai was toll operator Salik Company (SALIK.DU), opens new tab, which gained 2.5%, while sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab gained 1.2%, a day after reporting a rise in third-quarter profit.
In Abu Dhabi, conglomerate International Holding (IHC.AD), opens new tab rose 0.8% ahead of its earnings announcement.
However, crude prices - a catalyst for the Gulf's financial markets - fell as the U.S. dollar rallied on Trump's win.
Investors believe a Trump presidency will bolster the dollar as interest rates may need to remain high to combat inflation resulting from any new tariffs.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.8%, with Fawry For Banking Technology Electronic Payments (FWRY.CA), opens new tab rising 3.2%.
Egypt's net foreign reserves rose to $46.942 billion in October from $46.737 billion in September, the central bank said on Wednesday.
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