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LuLu Group International, renowned for its expansive hypermarket chains across the Middle East, is exploring the prospect of an initial public offering (IPO) that could potentially raise over $1 billion. According to sources familiar with the matter, the conglomerate is reaching out to banks for advisory roles on the IPO, contemplating a dual listing in Riyadh and Abu Dhabi, albeit the details remain confidential at this stage.
- Scheduled for the second half of the year, the IPO is anticipated to focus on LuLu's core business within the Gulf Cooperation Council (GCC), although the specific operational facets earmarked for listing are yet to be finalized. Notably, LuLu recently secured 10 billion dirhams ($2.5 billion) in debt refinancing, laying the groundwork for its IPO aspirations. While LuLu declined to comment on the matter, industry observers foresee a strategic move that underscores the group's ambition for broader capital market engagement. With a rich history dating back to the Gulf region's oil boom era in the early 1990s, LuLu has emerged as a powerhouse in the retail sector, boasting annual revenues of approximately $8 billion and a vast workforce exceeding 70,000 employees.
Why it matters
LuLu's potential IPO marks a significant development in the region's corporate landscape, particularly considering the rarity of dual listings.
