DUBAI/BEIRUT, April 17 – Azadea Group, the Middle East operator of fashion retailer Zara and entertainment chain Virgin Megastore, has put its plans for an initial public offering (IPO) on hold to prioritize business expansion, according to sources familiar with the matter.
The Beirut-based company is focusing on strengthening its presence in existing markets and evaluating opportunities in new Middle Eastern countries before moving forward with a public listing, the sources said, requesting anonymity due to the confidential nature of the discussions.
The decision is not linked to recent market volatility stemming from U.S. trade policies or fluctuations in global oil prices, the sources added. Azadea had earlier invited banks to pitch for roles in a potential IPO, Bloomberg News reported in January. The retailer operates more than 700 stores across over a dozen countries and is seen as a major player in the region’s retail sector.
Dubai Holding, the investment firm owned by Dubai’s ruler, acquired a minority stake in Azadea in 2018, valuing the company at over $1 billion, according to Bloomberg. The firm is also reportedly exploring listings of two real estate portfolios to tap into the emirate’s property boom.
Gulf equity markets have faced headwinds in recent months, with regional IPO activity challenged by broader market uncertainties and weaker oil prices. However, bankers remain optimistic about the region’s listing pipeline over the longer term. Representatives for Azadea and Dubai Holding declined to comment. Azadea was founded in 1978 by Lebanon’s Daher family and has since grown into one of the region’s leading retail operators, according to its website.
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