UAE’s Lulu selects banks for potential $2bn IPO

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UAE’s retail conglomerate LuLu Group International has appointed local and international banks to lead its proposed $2 billion initial public offering (IPO), according to a media report.

The company, which is among the largest hypermarket chain operators in the Middle East, has selected Abu Dhabi Commercial Bank, Citigroup, Emirates NBD Capital and HSBC Holdings to handle its planned floatation, Bloomberg reported, quoting unnamed sources.

New York-headquartered Moelis & Company has taken on the role of an independent financial adviser.

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No decision has been taken on the exact IPO size and timing, the report said.

In August 2023, Bloomberg reported that Lulu would raise $2.72 billion from local banks to refinance debt ahead of a potential IPO.

Founded by Indian billionaire Yusuff Ali in the early 1990s, the retail operator has an annual revenue of about $8 billion and employs more than 65,000 people in 23 countries across the Middle East, Asia, the US and Europe.

Nearly 30 companies in the Middle East and North Africa plan to launch initial public offerings this year, despite mixed share price performance from many regional businesses that went public last year, according to the report by consultants EY.