LuLu Retail Holdings, a major hypermarket chain in the Middle East, has started its initial public offering (IPO) which is expected to be the UAE’s largest this year. The conglomerate operates over 240 stores in the GCC countries and is capitalizing on the retail spending boom in the region. The IPO, scheduled to run from Oct. 28 to Nov. 5, will offer more than 2.582 billion shares and is expected to raise between $1.7 billion-$1.8 billion for a 25% stake.
According to LuLu’s IPO document, the company aims to maintain a total dividend payout ratio of 75% of annual distributable profits after tax, with payouts to be made twice a year. The company saw a 5.6% increase in revenue in the first half of 2024, reaching $3.9 billion, and its full-year revenue in 2023 rose to $7.3 billion. This growth was driven by sales from existing stores, expansion of the store network, and growth in the online channel.
In terms of core earnings, LuLu reported $391 million in the first half of 2024, up 4.3% from the previous year. Its annual core earnings in 2023 also rose to $753 million, a 7.2% increase. LuLu Group is the largest full-line retailer in the GCC countries, with a presence in all markets in the region. It operates 240 stores, including hypermarkets, express stores, and mini markets, with a strong omnichannel presence.
Yusuffali MA, the founder and chairman of LuLu Retail, expressed optimism about the company’s future and growth potential. He highlighted the company’s expansion from a single store in Abu Dhabi to becoming the largest pan-GCC retailer by market share and the fastest-growing player in Saudi Arabia. With over 600,000 daily shoppers and a network of distribution centers in the GCC, LuLu is a significant player in the retail industry in the region.
The company plans to pay a dividend for the six months ending on December 31, 2025, and posted revenues of $7.27 billion in 2023. Its strong international sourcing network, operating in 85 countries, allows LuLu to offer over 200,000 active SKUs to cater to the diverse needs of its customers. LuLu’s IPO is set to attract new shareholders who share the company’s passion for growth and success in the GCC retail market.
