Lulu Retail Holdings IPO: Indian businessman Yusuff Ali-founded Lulu kicks off one of UAE's biggest IPOs this year
Lulu, founded in 1974 by Indian businessman Yusuff Ali, follows other grocery firms that have recently listed.

Lulu Retail Holdings IPO: Running one of the Middle East’s biggest hypermarket chains, Lulu Retail Holdings, has started the process for its initial public offering (IPO). According to bankers, this IPO has the potential to be the largest in the UAE this year.
Lulu, founded in 1974 by Indian businessman Yusuff Ali, follows other grocery firms that have recently listed, such as UAE-based Spinneys this year and Saudi grocery retailer BinDawood Holding in 2020.
The IPO, scheduled from October 28 to November 5, will offer more than 2.582 billion shares, with trading expected to commence on the Abu Dhabi Securities Exchange on November 14, as per Lulu’s IPO document.
The conglomerate, which operates over 240 stores across the six Gulf Co-operation Council countries, is launching its IPO amidst a thriving retail spending environment in the region, which is encouraging domestic listings by companies in the sector.
Two sources involved in the transaction told Reuters that the offering could raise between $1.7 billion and $1.8 billion for the 25% stake.
Chief Executive Saifee Rupawala expressed confidence in Lulu’s continued success, saying in the IPO document, “We are confident that Lulu will continue to be where the world comes to shop.”
He highlighted the $100-billion market opportunity presented by GCC retail over the next five years and emphasized the firm’s potential for further growth in Saudi Arabia.
Consumers in the Middle East are increasingly opting for local and regional brands over international ones. Companies like Alokozay have emerged as competitors to Coca Cola and Pepsi, while some Western brands, including Starbucks, have faced boycotts due to Israel’s offensive in the Gaza Strip, the Reuters report said.
In Saudi Arabia, Savola Group announced plans in February to list its grocery subsidiary, Panda Retail. Additionally, the country’s wealth fund acquired a 30% stake in Tamimi Markets last year, preceding the supermarket chain’s anticipated IPO.
According to the IPO document, Lulu intends to maintain a total dividend payout ratio of 75% of annual distributable profits after tax, paid out twice yearly, subject to relevant parameters.
Lulu’s financial performance has been strong, with first-half revenue of $3.9 billion in 2024, up 5.6% year-on-year, and full-year revenue in 2023 rising 5.6% to $7.3 billion.
The annual increase in revenue was primarily driven by sales growth from existing stores, expansion of the group’s store network, and growth from its online channel.
Core earnings in the first half of 2024 stood at $391 million, up 4.3% year-on-year, while annual core earnings in 2023 rose 7.2% to $753 million.



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