UAE’s Lulu Retail Holdings Plc made its trading debut on Thursday after a highly anticipated Abu Dhabi IPO that raised $1.72 billion amid overwhelming demand. Despite being oversubscribed by over 25 times, with demand exceeding AED 135 billion, the shares closed flat at AED 2.04, the same as their opening price. During the session, shares hit a high of AED 2.05 before dipping 3% to AED 1.99. Over 247 million shares were traded in more than 8,500 transactions, with a turnover exceeding AED 500 million. Analysts attributed the muted secondary demand to a perception of fair valuation and investor caution shaped by recent IPO trends in the region.

Lulu’s cornerstone investors include regional sovereign wealth funds such as Bahrain Mumtalakat Holding Company, Emirates International Investment Company, and Oman Investment Authority. The subdued listing mirrors the modest debut of Spinneys, a smaller peer that raised $375.7 million in its IPO earlier this year. Spinneys’ shares also saw limited first-day gains and have since traded near the offer price. Lulu has appointed BHM Capital Financial Services as a liquidity provider to ensure trading stability on ADX. Analysts believe a significant rally in Lulu’s stock price will depend on the company meeting or exceeding its guidance, as shared during its roadshow.