LuLu Group International, known for its expansive supermarket chains across the Middle East, is gearing up for its anticipated initial public offering (IPO) in Abu Dhabi.
According to a report, which cites sources familiar with the matter, the hypermarket giant has enlisted the services of investment banks including Abu Dhabi Commercial Bank, Citigroup, Emirates NBD Capital, and HSBC to facilitate its potential $2 billion listing. Moelis & Co has been appointed as an independent financial advisor. However, while these steps have been taken, final decisions regarding the timing and valuation of the IPO are yet to be solidified.
The IPO is expected to unfold in the latter half of the year on the Abu Dhabi Securities Exchange (ADX). Additionally, there are indications that LuLu Group International may explore the possibility of a dual listing in Riyadh, Saudi Arabia. Should the IPO proceed as planned, it would rank among the larger equity offerings in the Gulf region for the year. In a significant transaction in 2020, an investment entity associated with Abu Dhabi royalty acquired a 20 percent stake in LuLu for over $1 billion, valuing the retailer at more than $5 billion.
Founded in the 1990s, LuLu Group International has established a widespread presence, operating hypermarkets across 26 countries spanning regions such as the Middle East, Asia, the US, and Europe. With an annual revenue of approximately $8 billion, the conglomerate employs a workforce exceeding 70,000 individuals.
The company's decision to go public comes against the backdrop of its sustained growth and market expansion efforts. Despite facing challenges posed by the global economic landscape, LuLu has demonstrated resilience and adaptability, maintaining its position as one of the leading supermarket chains in the region. The IPO represents a strategic move aimed at further consolidating its market presence and accessing capital markets to fuel future growth initiatives.
As the preparations for the IPO progress, investors and stakeholders will closely monitor developments, eagerly anticipating insights into the timing, valuation, and potential impact of this landmark offering on the regional financial landscape.
