Skip to content Skip to Search
Skip navigation

Lulu Group targets Iraq and Africa ahead of Abu Dhabi IPO

Person, Human, Tie
Lulu Group was founded in 2000 by Yusuffali, centre
  • Supermarket has 239 stores in 23 countries and 60,000 employees
  • Listing on Abu Dhabi Securities Exchange planned for next year

Lulu Group International is planning a listing on the Abu Dhabi Securities Exchange in 2023 and has hired investment bank Moelis & Co to advise it.

The supermarket chain, which has its headquarters in Abu Dhabi, also confirmed to AGBI that it will add new outlets to its network as it consolidates in the Middle East and moves into new markets, including Iraq and North Africa.

Lulu Group was founded by Indian-born businessman Yusuffali and is one of the largest supermarket chains in the Gulf region. It operates 239 stores in 23 countries and employs more than 60,000 people.

V. Nandakumar, Lulu Group’s director of marketing & communications, said they are “confident about listing” as current market sentiment is strong. 

The Abu Dhabi Securities Exchange’s (ADX) market capitalisation opened above AED2 trillion ($545 billion) in June for the first time in its history, marking a landmark milestone that has made the region’s youngest exchange the second largest in the Middle East within only two decades.

According to the Arab Monetary Fund (AMF), the UAE capital’s bourse recorded the highest increase in trading value among Arab financial markets in May 2022 at 292.64 percent.

The rise in ADX’s market cap is attributed to a flurry of IPOs in the last few quarters, including Abu Dhabi Ports, Fertiglobe, Adnoc Drilling, Alpha Dhabi and Multiply Group.

IPOs of five Abu Dhabi government-controlled companies – ADNOC Drilling Co, urea and ammonia maker Fertiglobe, Al Yah Satellite Communication Co (Yahsat), Abu Dhabi Ports and petrochemicals manufacturer Borouge – raised a combined $5.73 billion.

The exchange’s market cap crossed the AED2 trillion mark following the completion of Borouge’s IPO, the largest-ever listing on ADX and the biggest for a petrochemical company in the Middle East.

Earlier this week, healthcare major Burjeel Holdings raised more than $300 million from its IPO on the ADX. 

Burjeel, which offered 11 percent of its share capital, attracted demand of more than $8.7 billion as the Middle East continues to be a rare bright spot in the global IPO picture.

According to EY, the Middle East and North Africa witnessed a 500 percent year-on-year increase in the number of companies listing during the first six months of 2022, with 24 IPOs raising $13.5 billion.

Lulu Group, which also operates shopping malls and other businesses including hospitality, shipping and real estate, has an annual revenue in excess of $8 billion, and mainly operates in markets across the Middle East, Asia, Europe and the US.

Abu Dhabi sovereign wealth fund ADQ said in 2020 it was investing up to $1 billion in Lulu to help it expand in Egypt, with Reuters reporting it had bought a 20 percent stake, implying an overall valuation for the company of $5 billion.

Latest articles

Adnoc sought advice from investment banks on buying a significant stake in BP, a media report said

UAE’s Adnoc explored acquiring BP

Abu Dhabi National Oil Company (Adnoc) explored the possibility of acquiring British oil major BP but abandoned the plan as it did not fit into its strategic growth objectives, a media report said.  The talks did not advance beyond the initial stages, Reuters reported, citing informed sources.  The UAE state oil company also sought advice […]

Nature, Undersea cables account for as much as 90 percent of Europe-Asia telecommunications, Water

Iraq and Kuwait team up for European telecom corridor

Iraq’s Informatics and Telecommunication Public Company, a division of the Ministry of Communications, has signed an agreement with Kuwait’s Zajil Telecom to create a telecommunications corridor from the Gulf region to Europe, transiting through Iraq and Turkey. The new route will pass through Iraqi sea and land ports. Iraq’s minister of communications Hayam Al-Yasiri said […]

Turkish crude steel output rose 25% year on year to 3.2 million tonnes in January

Turkish steel in the black but EU rules rankle

Turkey’s steel industry has rebounded strongly from a weak 2023, despite facing new emissions standards and competition for important markets.  Crude steel output rose 25 percent year on year to 3.2 million tonnes in January, with domestic consumption of finished steel reaching 3.5 million tonnes, a 20 percent increase.  Exports were also up, increasing 23 […]

Passengers at Beijing Capital International Airport. Air China will fly from the airport to Riyadh three times a week.

Third Chinese airline to launch flights to Saudi Arabia

Air China is set to begin flights to Riyadh in May, becoming the third Chinese airline to establish a route to Saudi Arabia. It joins China Southern and Eastern Airlines in connecting China with the kingdom.  Air China’s Airbus A330-300 will serve the Beijing-Riyadh route three times a week. The expansion in capacity between the […]