Union Coop listed its shares on the Dubai Financial Market today, marking its position as the first cooperative society to do so in the UAE.
The company’s shares were valued at AED3 billion.
The society’s shares are listed as UNIONCOOP under the Consumer Staples and Discretionary Sector section.
The listing aligns with Union Coop’s and the emirate’s efforts to develop the Dubai Financial Market and accelerate investments in the country.
“The listing underscores our commitment to protect members’ interests by providing them with a regulated, efficient and transparent marketplace for trading Union Coop shares,” said Khalid Al Falasi, CEO of Union Coop.
“We are determined to leverage the facilities and services offered by the capital markets to implement our growth strategy and to provide our members with cutting-edge financial market services through Dubai Financial Market.”
To celebrate the listing, His Excellence Majed Hamad Rahma Al Shamsi rang the market’s opening bell.
The UAE government has encouraged trading shares on financial markets to strengthen the regulatory environment for the cooperatives’ sector and reinforce competitiveness.
“We are pleased to welcome the listing of Union Coop as a significant milestone in line with efforts to implement Dubai’s strategy to develop its financial markets and Dubai Financial Market’s endeavour to diversify investment opportunities offered to investors,” said Hamed Ali, CEO of Dubai Financial Market and Nasdaq Dubai.
“This listing will enable investors to participate in a notable success story for one of the prominent cooperatives in the UAE and a leading brand in the retail sector, noting this sector’s importance as a key economic driver in Dubai, which is poised to gain further momentum with the listing on the market as we look to welcome more cooperatives in the future.”
Union Coop’s objective is to increase profits and returns for its members by bringing in more sales and revenue, said the society.
To date, Union Coop’s expansion plans, which began last year, have brought its portfolio to 24 branches and four malls.
The first quarter saw AED116.5 million in net profits, a 2.6 per cent increase from the first quarter of 2021.
Last year, Union Coop reported AED413 million in profits and a profit margin of 21 per cent.
Since its inception in 1984, Union Coop has recorded a compound annual growth rate of 10.5 per cent, with sales having increased by 16.85 per cent.
In 1984, Union Coop comprised 315 members. Today, 36,659 are registered members of the cooperative society.