Page 48 - SALIK PR REPORT OCTOBER 2024

The much-awaited UAE IPO opened for subscription at 8am, and bankers

and market analysts said instant over-subscription is guaranteed. The

share price range comes in slightly higher than what the market
anticipated, as is the issue size. Most market watchers had been expecting

something close to or at Dh5 billion.

There is near unanimity that LuLu will eventually confirm Dh2.04 as the
final offer price. Retail investors are guaranteed a minimum 1,000 shares,

on minimum investments of Dh5,000 and multiples of Dh1,000 thereafter.

LuLu Retail has a sizable share of the UAE and Gulf's supermarket space,

with its expanding operations in Saudi Arabia starting to clock higher

returns.

"The stock price range was finalised after extensive study and feedback

from the investor community, whether that's from the UAE, the wider Gulf

region and international," said Saifee Rupawala, CEO of LuLu Retail. "I
think this will give a massive opportunity for the wider segment of market,

including our customers and anyone else who has known 'Brand LuLu' to

be part of our growth story.

LuLu targets a total dividend payout of 75% of annual profits after tax,

which are to be paid semi-annually. The first dividend will be paid in H1-
2025.

25% FLOAT

In all, 2.58 billion shares of LuLu Retail are being offered to retail and

institutional investors. This represents 25% of the GCC retailer's overall
equity.

Retail investors will get 10% of the overall issue size, with LuLu floating

25%. There has already been talk that the retail offer size could be increased

given the anticipated levels of subscription. (LuLu has the right to do at any

point before the close of the issue.)