UAE: Lulu appoints banks for $2 billion IPO in second half of year

Global retail giant LuLu Group International has appointed banks for its initial public offering expected to be in the second half to raise $2 billion.

Emirates NBD Capital, Abu Dhabi Commercial Bank, Citigroup, and HSBC Holdings are understood to be working on the planned offering with Moelis & Co acting as an independent financial adviser, Bloomberg reported. Representatives of the banks and LuLu declined to comment.

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The listing is expected to be on the Abu Dhabi Securities Exchange (ADX) and take place in the second half of the year. The company is also considering a dual listing to include Saudi Arabian stock exchange Tadawul.

LuLu, which operates more than 260 outlets, including department stores, mall and hypermarkets across more than two dozen countries, has its global headquarters in Abu Dhabi.

The conglomerate, which was valued at more than $5 billion in 2020, announced in August 2023 that it would be raising Dh10 billion to refinance its debt ahead of the offering. According to a Lulu spokesman, the syndicated loan underscored the confidence its financial partners have in the retail giant’s vision and strategy.

An investment firm backed by a member of Abu Dhabi’s royal family bought a 20 per cent stake worth just over $1 billion in the group in 2020.

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