Abu Dhabi-based LuLu Group International is planning to launch an initial public offering (IPO) in the first half of next year and list its shares on the Abu Dhabi Securities Exchange. The hypermarket and chain operator has enlisted investment bank Moelis to advise on the IPO.
LuLu, one of the largest supermarket chains in the Gulf founded by Indian-born businessman Yusuff Ali, currently operates 254 hypermarkets and shopping malls in 10 countries, including India, Egypt, Malaysia, and Indonesia.
The company intends to open 80 more hypermarkets in the GCC and other countries within the next two years. Originally targeted for this year, the IPO plans coincide with a surge in listing activity on regional stock markets as economies recover from the pandemic-induced slowdown.
In the second quarter of 2023, IPO volume in the MENA region increased by 44% YoY, driven by Saudi Arabia and the UAE. However, proceeds from MENA listings fell by 80% to $1.8 billion, according to EY data. In 2022, Middle East IPOs raised over $23 billion from 48 listings, compared to $7.52 billion from 20 offerings in the previous year.