UAE retail giant Lulu Group to float 25% in IPO next week, to raise around $1.8bln

Mon Oct 21 08:38:25 UTC 2024: **Summary of Lulu Group’s IPO Announcement:**

1. **IPO Plans**: Lulu Group International is expected to announce its intentions to proceed with an initial public offering (IPO) on the Abu Dhabi Securities Market (ADX) by early next week.

2. **Stake Sale and Valuation**: The company plans to sell 25% of its stake in its retail arm and associated sourcing businesses, with expected proceeds between $1.7 billion and $1.8 billion, leading to a valuation of approximately $6.5 billion to $7 billion.

3. **Trading Timeline**: Pricing details will be revealed by the end of October, and shares are anticipated to start trading on the ADX by mid-November. A portion of the shares will be allocated to employees.

4. **Listing Discussions**: Although there were earlier discussions about a dual listing on the Saudi Exchange (Tadawul), this will not proceed for now, but talks for a future listing are ongoing.

5. **Advisors**: Key banks involved in the IPO include Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank, and Citigroup, with Moelis & Co. serving as financial advisors.

6. **Company Background**: Established in the 1990s by Yusuff Ali, Lulu Group operates 260 stores and 24 malls across the GCC, Egypt, India, and the Far East, and reported an annual turnover of approximately $8 billion in 2022.

7. **Recent Developments**: In August 2023, the group aimed to raise 10 billion UAE dirhams to refinance its debt and expand with 80 new hypermarkets, enhancing its supply chain and e-commerce capabilities.

8. **Market Context**: This IPO would mark the fourth in Abu Dhabi this year, following recent offerings including NMDC Energy and Alef Education Holding, and is positioned as the next significant retail IPO in the UAE following the Spinneys IPO earlier in the year.