LuLu Group International, one of the Middle East’s largest hypermarket operators, has invited investment banks to pitch for roles on a potential initial public offering (IPO) that could raise at least $1 billion, Bloomberg reported.
Sources familiar with the matter said the conglomerate is considering a dual listing in Riyadh and Abu Dhabi, the report said.
The IPO could take place in the second half of 2024, however, the exact scope of operations included is still to be determined, and is expected to involve LuLu’s core Gulf Cooperation Council business.
The retail titan raised AED10 billion last year reportedly to refinance debt ahead of a listing.
Dual listings are unusual in the region but not unprecedented – Americana Group conducted one in Saudi Arabia and the UAE earlier this year.
LuLu was valued over $5 billion in 2020 when an Abu Dhabi investment vehicle acquired a 20 percent stake worth more than $1 billion.
Founded in the 1990s by Indian entrepreneur Yusuff Ali during Gulf oil boom, LuLu generated annual revenue of approximately $8 billion according to its website.
It employs more than 70,000 staff operating across 26 countries worldwide.
Sources said LuLu had previously sought investment bank pitches for a 2022 listing before delaying.
The company declined to comment on its potential IPO plans, the report said.
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