LuLu Retail Holdings PLC is a 100% owned subsidiary (pre-IPO) of LuLu International Holdings Limited (parent company). ADQ invested in the parent company in 2020. LuLu has retail operations across 6 GCC countries and it has the largest pan-GCC retail footprint with a network of 241 stores and a total selling area of over 1.3mn Sqm (Square meters), 3x higher vs listed peers. The group serves over 130 nationalities with daily shoppers cumulatively over 600k, on top of over 300k visitors across their online channels. With over 5-decade long history of operations in the UAE, LuLu is the second largest grocery retailer in the country with a market share of 14%. The group is also the largest retailer in Kingdom of Saudi Arabia (KSA) Kuwait, Bahrain, Qatar and Oman.
LuLu Group is well positioned to benefit from the continued growth of the consumer sector in GCC where key drivers include, i) Favourable macroeconomic indicators ii) Government transformational initiatives and iii) Increasing Population. LuLu group’s revenue grew by 15.3% over the past 3 years reaching USD7.3bn in FY23, depicting a CAGR of 7.4%. The growth in revenue was led by robust like-for-like (LFL) growth which averaged 5.4% for 2022-23 along with contribution from opening of new stores. Between 2021-1Q24 the Group opened 70 total new stores. In 2024 the group intends to open c.21 new stores comprising of 12 hypermarket, 8 express stores and 1 Mini Market where 11 stores have already been opened from Jan-Aug 2024. The Group has planned 10 additional store openings in 2024 with 6 expected in KSA (5 Hypermarkets & 1 Express Store), 1 in UAE (Express store) and remaining 3 in Qatar (2 Hypermarkets and 1 Express Stores).
The total number of shares being offered in the IPO are 2.58bn shares (constituting 25% of the post-IPO share capital of the company). Offer Price Range will be announced on the same day and before the opening of the Offer Period on 28th October 2024. The selling shareholder is Lulu International Holdings Limited.
