Abu Dhabi-based leading hypermarket chain and mall operator in the Middle East, LuLu Group International, is seeking to raise Dirhams 10 billion (Rs 22,500 crore), ahead of a possible initial public offering (IPO) next year, local media reported.
The money will be used to refinance existing debt.
The group is reportedly borrowing the funds from Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Bank, and Mashreq Bank.
A LuLu spokesperson told Khaleej Times that the money will allow the company to “pay down existing debt, expand our footprint with 80 new supermarkets across the GCC, Egypt and beyond, and strengthen supply chain networks and e-commerce capabilities.”
Lulu is “preparing to capitalize on emerging opportunities and take its global presence to new heights through its IPO plans,” spokesperson added.
Lulu was valued at more than 5 billion dollars (Rs 4,14,78,32,50,000) in 2020 when an investment firm backed by a member of the Abu Dhabi royal family bought a 20 percent stake worth just over 1 billion dollars in the group.
The company operates shopping centers and other commercial activities, including hospitality, shipping and real estate.
The firm was founded by Kerala-born MA Yusuff Ali in 1995 during a years-long oil boom in the Gulf region.
It had annual revenue of about 8 billion dollars and employed more than 65,000 people in 23 countries across the Middle East, Asia, the US and Europe, according to its official website.
In India, Lulu Group has a retail presence in Kochi, Thiruvananthapuram, Bengaluru, Lucknow, and Coimbatore.
