UAE Union Coop prepares to list shares on Dubai Financial Market

Emirati supermarket chain Union Coop on Friday announced plans to list shares on the Dubai Financial Market (DFM) on July 18, as the first retail cooperative in the UAE to take this pioneering step.

The listing is part of the Securities and Exchange Higher Commission’s strategy to increase the size of the stock market in the emirate to AED3 trillion ($816.6 billion), increase the competitiveness of exchanges and encourage initial public offerings (IPO).

Union Coop also announced the suspension of trading in its shares via its portal as of July 1 and that trading will resume on July 18 via the DFM.

He said the Union will do a stock split according to the equation of one to 10, where each member of Union Coop will receive 10 shares for each share currently held. The share price will be determined on the first trading day.

Union Coop has maintained a historical record of operational and financial excellence since 1984, when its net profits recorded a compound annual growth rate of 20.5%, while its sales increased by 16.85%.

It recorded a 2.6% increase in net profit in the first quarter of 2022 to AED116.5 million ($31.7 million), while full-year 2021 net profit reached AED413 million. AED ($112.4 million).

Khalid al-Falasi, CEO of Union Coop, said the milestone represents a key milestone in the Coop’s development journey, as it provides its members with an efficient, regulated and transparent market for trading their shares.

“It also allows us, as a publicly traded Union Coop, to leverage the many benefits of capital markets to implement our growth strategy and provide our members with innovative DFM services, such as transparent distribution of cash dividends.”

DFM and Nasdaq Dubai CEO Hamed Ali said the impending listing underscores the joint efforts between DFM and various economic sectors in Dubai to accelerate the implementation of the emirate’s strategy to develop its financial markets.

The Coop works constantly under the direct supervision of the Supreme Committee for the Development of Capital Markets to achieve strategic objectives and strengthen Dubai’s leading position as a global capital markets hub by creating a highly efficient, transparent, diverse and deep, he added. .

Union Coop has seen remarkable expansion, starting with two branches in 1984 at 24 and four shopping malls in 2021.

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