UAE supermarket operator Lulu Group is expected to opt for a single listing on the Abu Dhabi Exchange having previously pursued a dual listing with Saudi Arabia’s Tadawul.

Bankers involved with the deal said the shift was no reflection of markets or investor demand and simply a product of difficulties coordinating with two regulators.

One banker said the Tadawul listing is still seen as desirable and could be pursued at a later date.

A second banker said there were no discussions on changing the size of the deal or pricing, though there would be slightly less Saudi participation due to the loss of a local retail offer and some domestic-focused funds.

The second banker remained confident on demand, referencing a number of recent reverse enquiries.

The deal is on course to be one of the largest in the UAE this year with expectations of an around US$1.5bn-equivalent offer.

Abu Dhabi Commercial Bank, Citigroup, Emirates  NBD and HSBC are running the deal.

A successful dual listing between ADX and Tadawul previously took place in 2022 with Americana Restaurants' US$1.8bn IPO.

The deal benefited from having Saudi Arabia’s Public Investment Fund as a joint issuer although the process required considerable preparatory work and a trading debut was delayed by a week.

Source: IFR