Abu Dhabi-based retail giant LuLu Group International is planning to launch an initial public offering (IPO) in the first half of next year and list its shares on the Abu Dhabi Securities Exchange.
The company has appointed Moelis and Co as its advisor for the IPO, Lulu’s chairman and managing director, Yusuff Ali, told reporters.
Originally targeted for this year, the IPO plans coincide with a surge in listing activity on regional stock markets as economies are reviving after the lockdown-induced slowdown.
The retailer also intends to add 80 more hypermarkets in the GCC and other countries within the next two years.
One of the largest supermarket chains in the GCC, founded by Indian-born businessman Yusuff Ali, LuLu Group operates 254 hypermarkets and shopping malls in 10 countries, including Egypt, India, Malaysia and Indonesia.
In the second quarter of 2023, IPO volume in the Mena region increased by 44 per cent year-on-year, driven by the UAE and Saudi Arabia.
However, proceeds from Mena listings dropped by 80 per cent to $1.8 billion, according to EY data.
Last month, the retailer announced it is raising Dh10 billion ($2.72 billion) to refinance debt ahead of a potential initial public offering, according to its spokesperson.
The conglomerate is borrowing funds from Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Bank and Mashreq Bank. The loans have an average maturity of 10 years.
In 2022, Middle East IPOs raised over $23 billion from 48 listings, compared to $7.52 billion from 20 offerings in the previous year.
