Union Coop, Dubai-based grocery retailer, has announced that it will list its shares on the Dubai Financial Market on July 18, to increase funding and investments for its growth plans.
“The listing enables us to leverage the numerous benefits of capital markets to implement our growth strategy and provide our members with the Dubai Financial Market innovative services,” said Khalid Al Falasi, CEO of the Union Coop.
“It also enables us, as a listed Union Coop, to leverage the numerous benefits of capital markets to implement our growth strategy and provide our members with the innovative Dubai Financial Market services such as the seamless cash distribution.”
The retailer’s share price will be valued on the first day of trading.
Trading stopped on Union Coop’s own portal on July 1.
Existing shares will be split among members of the cooperative society, each receiving 10 shares per share owned, accessible upon creating an account on the Dubai Financial Market.
“This listing underlines the joint efforts between the Dubai Financial Market and various economic sectors in Dubai to accelerate the implementation of Dubai’s strategy to develop its financial markets, aiming to increase its value to AED3 trillion,” said Hamed Ali, CEO of Dubai Financial Market and Nasdaq Dubai.
“We are pleased to welcome the first listing by a retail co-op in the UAE, as the emergence of a promising prospects for listing of more co-operatives in the future.”
The move comes after the UAE allowed cooperative societies to be listed on the country’s markets in February.
The decision aligns with efforts to increase investments into local markets, encourage local public initial offerings and boost liquidity and strength of the market.
It also helps to “attract strategic partners and introduce new forms such as digital and financial co-ops”, said Sheikh Mohammed Bin Rashid, vice president and ruler of Dubai.
“Co-operatives are a successful economic model that can be built upon and developed.”
Dubai will also list 10 state-owned businesses on its market, in efforts to invite foreign investments and double the market’s value to amount to AED3 trillion.
The emirate has also activated an AED2 billion fund to invite private retail companies to list their business on the Dubai Financial Market.
“We are persistently working under the direct supervision of the Supreme Committee for the Development of Financial Markets to achieve the strategic objectives and strengthen Dubai’s leading position as a global capital markets hub by the creation of a highly efficient, transparent, diversified and deep financial marketplace,” Mr Ali added.
To date, Union Coop’s expansion plans, which began last year, have brought its portfolio to 24 branches and four malls.
Last year, the grocery retailer’s net profit was valued at AED413 million.
The first quarter saw AED116.5 million in profits, a 2.6 per cent increase from the first quarter of last year.
