Royals as investors; Lulu with records, considering 75 percent dividend to shareholders

ABU BADI : Lulu Retail has started trading in the largest listing in the GCC by an Indian-owned company. UAE Minister of Investment Mohammed bin Hassan Alsuwaidi and Lulu Chairman MA Yousafali started by ringing the bell at the Abu Dhabi Securities Exchange. Government representatives also witnessed the bell ringing ceremony. Investors in the GCC, Lulu employees and customers from various parts of the world participated in the moment trading started through live streaming.
UAE Minister of Investment Mohammad Bin Hassan Al Suwaidi said that the partnership provided by Lulu for the development of the UAE and the GCC is exemplary and Lulu is becoming more popular after entering the public partnership. Lulu Retail stocks have a good participation of Arab countries including UAE and foreign investors. Lulu Retail is expected to receive good demand from retail investors even after the listing.
Lulu Chairman MA Yousafali said that the ADX listing is a historic moment in Lulu’s retail journey and the trust reposed in Lulu by investors has come true through the listing. Lulu will continue to strive for better returns for investors. Lulu is targeting 100 stores within three years. Investors will best support the confidence they have placed in Lulu. Lulu thanked the investment firms that are part of Lulu Retail, including the royal families of the GCC, the management and Lulu employees for their steadfast support.
Major investors include Abu Dhabi Pension Fund, Emirates International Investment Company, Bahrain Mumtalaq Holdings, Oman Investment Authority, Kuwait Investment Authority and Qatar Investment Authority. Investors include members of the royal families of the GCC.
In addition to professional investment firms, over half a million individual investors subscribed within sixteen days of the IPO. Considering the huge demand, the shares were increased to 30% percentage. The Lulu IPO received the best investor participation in the history of the Abu Dhabi Securities Exchange.
More than 3 lakh crore rupees have been collected with 25 times additional collection. The initial share sale was from October 28 to November 5. Initially, it was decided to list 25 percent of the shares, but due to increased demand, it was increased to 30 percent. 3.12 lakh crore subscription applications received. 89 per cent shares were allocated to investment institutions, 10 per cent to retail investors and 1 per cent to employees. Lulu Retail’s market value is $5.74 billion.
Lulu had previously stated that it would consider paying 75 percent of its after-tax profit as a dividend. Expansion projects in the GCC and other countries also ensured greater investor presence. Every Malayali can be proud that a Malayalee entrepreneur’s venture in a foreign country has got investor participation including members of the GCC royal family.