LuLu Group International, which runs one of the largest supermarket chains in the Middle East, has hired investment banks for its planned initial public offering in Abu Dhabi, according to a report by Bloomberg, which cited sources with knowledge with the matter.
The hypermarket operator has appointed Abu Dhabi Commercial Bank, Citigroup, Emirates NBD Capital and HSBC to work on the potential $2 billion listing, the report said, adding that Moelis & Co is acting as independent financial advisor.
However, no final decisions have been made on timing or valuation, sources familiar with the matter said.
The offering is expected to take place in the second half of this year on the Abu Dhabi Securities Exchange (ADX). It may also pursue a dual listing in Riyadh, Saudi Arabia.
The possible IPO would be one of the larger share sales in the Gulf region this year. In 2020, an investment firm owned by an Abu Dhabi royal bought a 20 percent stake in LuLu for over $1 billion, valuing the retailer at more than $5 billion, Bloomberg said.
Founded in the 1990s, LuLu operates hypermarkets across 26 countries in regions like the Middle East, Asia, US and Europe. It generated approximately $8 billion in annual revenue and employs over 70,000 individuals.
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