ABU DHABI: Lulu Retail Holdings PLC has disclosed the price range for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX), along with the commencement of the subscription period, marking a significant step in the company's public market debut. According to Emirates News Agency, the subscription period for the IPO began today and is slated to conclude on November 5, 2024. This applies to the UAE Retail Offering, Eligible Senior Executives, and Professional Investors. The price range for the shares has been set between AED1.94 and AED2.04 per share. If all offered shares are sold, the offering is expected to raise between AED5.01 billion (approximately $1.36 billion) and AED5.27 billion (approximately $1.43 billion). Based on the established price range, Lulu Retail Holdings anticipates a market capitalization between AED20.04 billion (approximately $5.46 billion) and AED21.07 billion (approximately $5.74 billion). The offering will involve the sale of 2,582,226,338 ordinary shares, w hich represent 25% of the company's total issued shares, by its sole shareholder, Lulu International Holdings Limited. The final offer price will be determined via a book-building process, with an announcement expected on November 6, 2024. The company plans to distribute dividends with a pay-out ratio of 75% of annual distributable profits after tax, paid semi-annually. A dividend for the second half of 2024 is projected to be disbursed in the first half of 2025. The shares are expected to commence trading on ADX on November 14, 2024. Saifee Rupawala, CEO of Lulu Retail, highlighted the investment opportunity for both local and international investors, emphasizing the company's substantial market presence and growth trajectory in the GCC region. The company serves over 600,000 customers daily across its network of stores, offering a broad range of products. On October 28, 2024, Lulu Retail Holdings and Lulu International Holdings Limited finalized cornerstone investor agreements with several major investor s, including Abu Dhabi Pension Fund and Bahrain Mumtalakat Holding Company. The agreements secure approximately AED753 million (around $205 million) in commitments, with a notable $100 million from Emirates International Investment Company LLC. The shares purchased by cornerstone investors will be subject to a 180-day lock-up period following the listing.