Lulu Group International, a renowned global retail conglomerate, is gearing up for a significant initial public offering (IPO) in the latter half of the year, aiming to raise $2 billion. This development has placed the company at the forefront of major financial movements in the retail sector.
The company has brought on board a cadre of prominent financial institutions to facilitate the offering, including Emirates NBD Capital, Abu Dhabi Commercial Bank, Citigroup, and HSBC Holdings, with Moelis & Co serving as an independent financial adviser. While representatives from both the banks and Lulu Group have not commented on this matter, the involvement of these institutions speaks volumes about the potential scale and impact of the IPO.
Lulu Group’s listing is anticipated to occur on the Abu Dhabi Securities Exchange (ADX), and there is also consideration for a dual listing that would include the Saudi Arabian stock exchange Tadawul. This strategic move could broaden the company’s investor base and enhance its visibility in key markets.
With over 260 outlets, including department stores, malls, and hypermarkets in more than two dozen countries, Lulu Group’s global operations are headquartered in Abu Dhabi. The company, which was valued at over $5 billion in 2020, announced plans in August 2023 to raise Dh10 billion for debt refinancing ahead of the IPO. This move was seen as a testament to the confidence its financial partners have in Lulu Group’s vision and growth strategy.
In 2020, an investment firm backed by a member of Abu Dhabi’s royal family acquired a 20 percent stake in Lulu Group for just over $1 billion, indicating the group’s strong market position and growth potential. The conglomerate has been on an aggressive expansion drive, with plans to open 80 new hypermarkets across the GCC, Egypt, and beyond. Additionally, Lulu Group has invested $2.41 billion in India, with intentions to increase this investment to $6.03 billion by 2025.
In 2022, Lulu Group recorded an impressive annual revenue of about $8 billion and employed over 70,000 people across 26 countries in regions such as the Middle East, Asia, the US, and Europe.
The planned IPO of Lulu Group International is not an isolated event in the Middle Eastern market; Spinneys Dubai LLC is also reported to be planning a Dubai IPO this year, highlighting a trend of regional supermarket chains tapping into public markets for growth and expansion.
