LuLu IPO to drive active expansion, says top executive
According to Dr Mohamed Althaf, director, LuLu Group International, LuLu's milestone move at the Abu Dhabi Securities Exchange (ADX) has cemented regional trust in LuLu, while empowering the retail giant 'to pursue a bolder, more ambitious trajectory'.
'Our company went public. At some point in our business, we realised that it's time we should share our growth and prosperity with the region that has contributed and enabled our growth,' Dr Althaf told Gulf Times, describing the IPO as 'wonderful' and underscored its success in attracting major sovereign investors from across the region.
According to Dr Althaf, the IPO provides LuLu with enhanced opportunities for active expansion, while maintaining its core business model. 'Structurally, fundamentally, our business model is not going to change,' he emphasised, adding that 'what will happen with the IPO is that maybe our expansions will become even more active. We believe that because we have a growth story to meet'.
Dr Althaf further noted that the IPO is expected to introduce a shift in the company's governance structure, making it 'far more accountable and transparent'. This accountability and transparency, as well as the financial freedom brought by the IPO, will enable LuLu to expand its footprint into new markets while reinforcing its commitment to Qatar and the region, Dr Althaf pointed out.
'The IPO gives us the freedom and the responsibility that we should continue to invest in our business, stay focused, expand our footprint to markets, and stay committed to countries like Qatar in the region,' Dr Althaf further explained, stressing that LuLu remains deeply aligned with its host nation's development goals.
Furthermore, Dr Althaf connected the IPO to LuLu's broader vision of innovation and sustainability. He noted that the company is actively leveraging digital transformation, cloud-based technologies, and AI tools to boost efficiency and achieve sustainability goals. He cited advancements in areas like cold chain management, energy reduction, and e-commerce as examples of LuLu's commitment to progress.
'We will continue to invest in Qatar. We will continue to expand in Qatar. We will do experiments and move ahead,' emphasised Dr Althaf, who reaffirmed the company's dedication to its host nation and the region.
Dr Althaf further pointed out that the IPO marks a transformative phase for LuLu Retail, paving the way for active expansions, greater accountability, and a bold vision for sustained growth.
On its website, LuLu Retail announced that the 'IPO raised gross proceeds of AED6.32bn making it the largest offering in the UAE in 2024 to date. The offering saw aggregate demand of over AED135bn from local, regional, and international investors, a record for a non-government UAE IPO over the past 10 years, and an oversubscription level of more than 25 times across all tranches (excluding Cornerstone Investors). Cornerstone investors included leading sovereign and institutional investors from across the GCC and beyond'.
© Gulf Times Newspaper 2022 Provided by SyndiGate Media Inc. (Syndigate.info).
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