Lulu Retail Holdings, which runs one of West Asia’s biggest hypermarket chains, said on Monday it aims to raise up to 5.27 billion dirhams ($1.43 billion) in what is set to be the UAE’s biggest initial public offering so far this year.

The conglomerate, which runs more than 240 grocery stores in six Gulf countries, is offering 2.582 billion shares, equal to a 25 per cent stake at an indicative price range of 1.94-2.04 dirhams per share, it said in a statement.

Books were covered multiple times within hours of opening as demand from investors exceeded the overall deal size.

Two sources involved in the IPO had previously told Reuters the offering could raise between $1.7 billion and $1.8 billion.

While Lulu Retail did not disclose any India related plans in its prospectus, it said at the end of 2023, the group’s top three sourcing countries for imports, excluding GCC countries, were India (20 per cent), China (20 per cent) and the US (10 per cent)

The group operates retail stores under the LuLu brand in the UAE, the KSA, Oman, Qatar, Kuwait and Bahrain. Citing the Market Consultant, the prospectus said that the group was the second largest grocery retailer in the UAE.

Reuters; with inputs from Mumbai Bureau