How to Invest in LuLu Group’s IPO on Abu Dhabi Securities Exchange (ADX)

Dubai-based retail giant LuLu Group has opened its IPO subscription on the Abu Dhabi Securities Exchange (ADX), offering investors a chance to own part of one of the Middle East’s largest hypermarket chains. The Lulu IPO is the second NRI-owned company to list on ADX, following Burjeel Holdings, owned by Shamsheer Valappil.

Here’s your guide to subscribing to LuLu’s IPO before the November 5 deadline, along with essential tips for securing shares amid high demand.

Key Details of LuLu Group’s IPO:

• Offer Size: 2.58 billion shares, representing 25% of LuLu Retail.
• Price Range: AED 1.94 to AED 2.04 per share, valuing the offering at AED 5.01–5.27 billion.
• Subscription Window: October 30 – November 5, 2024.
• Expected Listing Date: November 14, 2024.
• Investor Categories: Retail investors and institutions have designated share allocations.

Steps to Invest in LuLu’s IPO:

1. Get an ADX Investor Number (NIN):
   • Who Needs It? Any UAE resident or non-resident wanting to trade on ADX.
   • How to Apply: Use ADX’s digital portal, Sahmi (or eServices on adx.ae), and follow these steps:
     • Register and log in.
     • Complete the eForm with the necessary documents (UAE residents need a valid Emirates ID; non-residents need a valid passport).
     • Submit the application and receive your NIN via SMS.
2. Open a Trading Account: Choose an ADX-licensed brokerage to facilitate trading and manage your account.
3. Submit Your IPO Subscription:
   • Use your bank or brokerage to complete the subscription form.
   • Ensure you enter your ADX NIN accurately and provide the expected subscription amount.
4. Methods of Payment: Pay via online banking (UAE Central Bank Fund Transfer or the iVESTOR card) by referencing your NIN and selected share value.

Tips for Maximizing Allotment Chances in LuLu’s IPO:

• Bid Early: Place your bid within the first few days to increase your chances of securing shares.
• Allocate Capital Wisely: Oversubscription is likely given high demand; only part of your bid may be allocated.
• Understand Risks and Rewards: IPOs can be volatile, so consider LuLu’s prospectus and evaluate your financial goals and risk tolerance.

After November 5, share allotments will be finalized, with refunds issued for any excess subscription amount. If you missed the subscription period, trading opens on ADX on November 14, allowing secondary market purchase.