LuLu Group, the UAE-based retail giant, is set to open its initial public offering (IPO) by the last week of October or early November, Zawya has reported, citing sources familiar with the matter.
The company’s stock will be listed on both the Abu Dhabi Securities Exchange (ADX) and Saudi Arabia’s Tadawul. LuLu would be aiming to raise between $1.5 billion and $1.85 billion from the dual listing, according to the news platform.
If true, the timing would allow the retail group to coincide the listing with the busy holiday period. Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank, and Citigroup have been selected as book runners for the IPO.
Earlier this year, Spinneys, another retailer, raised Dh1.38 billion ($375 million) through its IPO on the Dubai Financial Market, drawing over $19 billion in orders. The company offered 900 million shares, representing 25% of the company’s total issued share capital, with retail investors being allocated 7% of the shares.
LuLu’s extensive network of hypermarkets and its commitment to providing quality products at competitive prices have earned it a strong foothold in the retail sector, making it a promising contender for investors seeking exposure to the Gulf market. In 2020, ADQ acquired a 20% stake in the group worth over $1 billion, supporting its expansion into Egypt. The group reported an annual turnover of approximately $8 billion in 2022.
LuLu Group has not commented on the matter. The company had previously engaged Moelis & Co as a financial advisor for the IPO in 2022.
