According to reliable sources, LuLu Group International, the largest hypermarket chain and mall operator in the Middle East located in Abu Dhabi, is raising Dh10 billion to restructure debt before a prospective initial public offering (IPO).
After deferring those plans this year, the company, which had a valuation of more than $5 billion in 2020, is realigning its capital structure in preparation for a potential IPO in 2024. According to the sources, it is collaborating on the IPO plans with Moelis & Co. The significant syndicated loan, according to a Lulu group official spokesperson who talked to Khaleej Times, “underscores the confidence [its financial partners] have in the global retail giant’s vision and strategy.” This infusion of cash will enable us to pay off existing loans, further expand our footprint by opening 80 additional hypermarkets throughout the GCC, Egypt, and beyond, improve supply chain networks, and expand our e-commerce capabilities, all of which will benefit the economies in which we operate.
He asserted that the organization’s dedication to providing its clients with outstanding value has not changed. “With a reputation for excellence, innovation, and customer-focused service, the business is well-positioned to seize new possibilities and expand its worldwide presence to entirely new levels with our IPO preparations. We anticipate an increase of about 15% this year, according to our performance thus far this year, the spokesman said.
According to the persons who asked to remain anonymous because the information was private, the organization is apparently borrowing money from Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Bank, and Mashreq Bank. The average loan maturity is 10 years.
A member of the Abu Dhabi royal family-backed investment company acquired a 20% share in the company that runs retail malls and other companies like hospitality, shipping, and real estate in 2020 for slightly over $1 billion.
The LuLu group, which was established in the early 1990s by Indian businessman Yusuff Ali, chairman and managing director, reported $8 billion in annual revenue in 2022. In 23 nations across the Middle East, Asia, the US, and Europe, it employs over 65,000 individuals.
In order to provide online grocery shopping in the UAE through a branded storefront on Amazon.ae, LuLu Group and Amazon joined in November 2022. When the relationship with Amazon was announced, Yusuff Ali said, “We believe in listening to customers and adjusting our approach to accommodate to their increasing buying habits. We are thrilled to partner with Amazon to provide a cutting-edge online food solution.