Page 66 - SALIK PR REPORT OCTOBER 2024

Vijay Valecha, chief investment officer at Century Financial, said the response to Lulu
IPO from retail and institutional investors in the UAE is anticipated to be very strong,
with an expected oversubscription.

Vijay Valecha
“LuLu Group, founded in 1974, has grown into a common household name in the UAE,
with about 240 stores across six countries. As per Global Media Insight, the UAE has a
population of 10.17 million, with a significant portion from India, Pakistan, Bangladesh
and the Philippines. This Asian demographic forms the primary customer base for Lulu.
Given the promising growth prospects in the UAE, this demographic is expected to
expand, and with LuLu being recognised as the most affordable retailer in the country, it
is well-positioned for growth, supporting the case for its IPO,” said Valecha.
“Moreover, the company intends to distribute 75 per cent of its annual distributable
profits after tax as dividends, paid out semi-annually. In 2023, LuLu reported earnings of
approximately $753 million, reflecting a year-over-year increase of about 7.2 per cent.
Hence, investors and institutions looking for stable dividends may also be interested in
the IPO,” he added.

https://www.khaleejtimes.com/business/markets/uae-lulu-ipo-set-to-maintain-trend-of-heavy-
oversubscription-say-analysts