LuLu Group’s potential Abu Dhabi IPO could top $2bn

LuLu Group International, a leading operator of hypermarket chains in the Middle East, has initiated preparations for what could potentially become one of the Gulf region’s most significant initial public offerings (IPOs) this year.

The retailer has enlisted the services of Abu Dhabi Commercial Bank, Citigroup, Emirates NBD Capital, and HSBC Holdings to manage the anticipated IPO in Abu Dhabi, reported Bloomberg News.

The report citing sources, noted that Moelis & Co will serve as an independent financial advisor for the offering.

LuLu IPO targets $2bn

The IPO could target raising as much as $2bn. However, no final decisions regarding the timing or valuation have been confirmed yet, as per the report.

Bloomberg News reported in February that the listing is anticipated to take place in the second half of this year, with the firm also considering a dual listing in Riyadh, as per sources familiar with the situation at the time.

Spokespersons for both the banks involved and LuLu Group declined to provide comments on the matter.

LuLu’s potential IPO is poised to be among the most notable listings in the Gulf region this year, which has witnessed a flurry of share sales activity over the past two years.

Notably, the majority of IPOs in the UAE have been conducted by state-owned entities, with private firms yet to follow suit.

Founded by Indian entrepreneur Yusuff Ali in the early 1990s, LuLu Group has grown substantially during the Gulf region’s economic boom.

With annual revenue reaching approximately $8bn and a workforce of over 70,000 employees, the company operates in 26 countries across the Middle East, Asia, the US, and Europe, according to its website.

Meanwhile, another prominent Middle Eastern supermarket chain, Spinneys Dubai, is also reportedly considering an IPO in Dubai later this year, as per previous Bloomberg News reports.

Read: Lulu to raise $2.7bn ahead of possible IPO