Abu Dhabi-based LuLu Group International, which owns one of the largest hypermarket chains in the Middle East, is reportedly raising 10 billion dirhams (about $2.72 billion) to refinance debt ahead of a potential initial public offering (IPO).
This is being done to realign its capital structure, expand the footprint of the business and enhance its capabilities before the intended listing in 2024, which has been delayed for one year, Bloomberg reported Thursday (Aug. 10), citing unnamed sources.
LuLu Group International did not immediately reply to PYMNTS’ request for comment.
A company spokesperson told Bloomberg that the funds will be used to “pay off existing debts, further extend our footprint with 80 new hypermarkets across the GCC [Gulf Cooperation Council], Egypt and beyond, enhance supply chain networks and e-commerce capabilities.”
LuLu Group is “poised to capitalize on emerging opportunities and elevate its global presence to new heights with our IPO plans,” the spokesperson said.
Together with the hypermarket chain, the company also operates businesses in the shopping mall, hospitality, shipping, real estate and other sectors, according to the report. It has annual revenue of about $8 billion; employs 65,000 people across the Middle East, Asia, the United States and Europe; and was valued at more than $5 billion in 2020.
In November 2022, LuLu Group partnered with Amazon to offer online grocery shopping in the United Arab Emirates (UAE) via a branded storefront on Amazon.ae.
“We believe in listening to customers and adapting our model to cater to their evolving shopping preferences,” Yusuff Ali, chairman and managing director of LuLu, said when announcing the partnership. “We are excited to be working with [Amazon] to offer an innovative online grocery offering.”
The partnership with Amazon extends LuLu’s presence in the eCommerce space in a country where online and hybrid “phygital” shopping is on the rise, PYMNTS reported at the time.
PYMNTS research has found that consumers in the UAE are especially open to mobile-assisted commerce. Over 60% of all consumers in the country used their smartphones at least once during their most recent shopping experience, whether it was online or in-store, according to the “2022 Global Shopping Index: UAE Edition,” a PYMNTS and Cybersource collaboration.