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

Flooding in Dubai affected many people's homes. Emaar has promised .free repairs for its residents, and an upgraded sewerage system is planned

Emaar promises free repairs as Dubai launches sewerage system

Emaar Properties is offering free repairs to residents whose homes were damaged during this week’s extreme flooding, as Dubai also announced an AED80 billion ($22 billion) sewerage system. The developer announced on Friday that it would repair all homes in its communities affected by the historic levels of rain, “at no cost to residents”. Emaar’s […]

A customer paying with a credit card inside the Black Friday Market in Beirut. Lebanon wants more people to move away from cash

Lebanon launches plan to promote use of bank cards

Lebanese central bank Banque du Liban announced a new agreement on Thursday that it hopes will result in a rebound in the use of bank cards. As part of the agreement, Mastercard and Visa will lower card fees on transactions, particularly for people with bank accounts based outside Lebanon. In a press release, the bank […]

Construction work in Kuwait. Nurseries, schools and shops are being built for the new residential district of Al Metlaa

Kuwait signs $140m contracts for Al Metlaa development

Kuwait’s Public Authority for Housing Welfare (PAHW) has signed two contracts worth KD42 million ($140 million) to construct public buildings in Al Metlaa, a new residential district north of Kuwait City. Nurseries, stores, schools and shops will be included, state news agency Kuna reported. Electricity connections have been provided for 109 buildings in the district, […]

Iraq gas oil

Iraq to auction 30 oil and gas projects this month

Iraq will auction 30 new oil and gas projects in two licensing rounds before the end of April. The bidding round will be held on April 27, Reuters reported, citing an oil ministry statement. Last October Iraq passed a long-awaited oil and gas law, which will help the country attract more international investments into the hydrocarbon industry and boost government revenues.  Ali Metwally, an […]