LuLu Group International, one of the Middle East’s largest hypermarket operators, will begin gauging investor interest next week in preparation for a potential initial public offering (IPO) in Abu Dhabi.
According to a Bloomberg report, the company plans to start roadshows on Monday to raise interest in what could be one of the region’s largest IPOs this year.
The firm’s owners are seeking a valuation of at least $5 billion in the Abu Dhabi listing, sources familiar with the matter said. LuLu was previously valued at more than $5 billion in 2020 when an investment firm linked to a member of Abu Dhabi’s royal family purchased a 20% stake in the company. According to another source, the owners are now considering selling an additional 25% stake.
No final decisions have been made regarding the deal’s terms, including the size of the offering. A representative for LuLu declined to comment.
Initially considering a dual listing in Riyadh, the company now plans to focus solely on Abu Dhabi. LuLu has selected Abu Dhabi Commercial Bank PJSC, Citigroup Inc., Emirates NBD Capital, and HSBC Holdings Plc to manage the IPO, while Moelis & Co. is acting as an independent financial adviser.
Founded by Indian entrepreneur Yusuff Ali in the early 1990s, LuLu has grown significantly during the Gulf’s oil boom. The company generates around $8 billion in annual revenue and employs over 70,000 people across 26 countries in the Middle East, Asia, the US, and Europe.
The LuLu IPO follows the recent listing of high-end supermarket chain Spinneys 1961 Holding Plc in Dubai, which saw a relatively muted debut with shares remaining largely unchanged from their offer price.
