UAE-based Lulu to raise Dh10b ahead of IPO

UAE-based Lulu to raise Dh10b ahead of IPO

The hypermarket chain is realigning its capital structure before a possible IPO listing in 2024

Published: Thu 10 Aug 2023, 9:24 PM Last updated: Thu 10 Aug 2023, 9:25 PM

LuLu Group International, the Abu Dhabi-based leading hypermarket chain and mall operator in the Middle East, is raising Dh10 billion to refinance debt ahead of potential initial public offering (IPO), according to informed sources.

The conglomerate, which was valued at more than $5 billion in 2020, is realigning its capital structure before a possible listing in 2024 after delaying those plans this year. It is working with Moelis & Co. on the IPO plans, the sources said.

An official spokesperson of Lulu group told Khaleej Times that the substantial syndicated loan underscored the confidence its financial partners have in the global retail giant’s vision and strategy. “This injection of funds will empower us to pay off existing debts, further extend our footprint with 80 new hypermarkets across the GCC, Egypt and beyond, enhance supply chain networks and ecommerce capabilities, which will contribute positively to the economies in which we operate."

He said the group's commitment to delivering exceptional value to its customers remains unwavering. “With a reputation built on quality, innovation, and customer-centricity, the company