Union Coop, a leading consumer cooperative in the UAE, has announced plans to list its shares on the Dubai Financial Market (DFM) on July 18 as part of its new growth strategy.

 

Announcing the big plan, Union Coop said it will exercise a share split as per the equation of 1 to 10 (Union Coop member shall receive 10 shares against each currently-owned share) and share price will be determined on the first day of trading.

 

The listing is also part of the Securities and Exchange Higher Commission strategy aimed at increasing stock market size in the emirate to AED3 trillion ($816 billion), raise competitiveness of bourses and encourage initial public offerings (IPOs).

 

The Union Coop also announced the suspension of trading on its shares through its portal which it said will be resumed on July 18 through the DFM.

 

All members who have an investor number in the DFM and a trading account with one of the linseed brokerage firms will be able to trade their shares ordinarily, said Union Coop in its statement.

 

The Union Coop maintains a momentous record of operational and financial excellence since 1984, as its net profits recorded a compound annual growth rate of 20.5%, while its sales increased 16.85%. 

 

It had registered a 2.6% increase in net profits of the first quarter of 2022 which rose to AED116.5 million, while net profits of the full year 2021 hit AED413 million.

 

CEO Khalid Al Falasi said: "The listing of Union Coop shares on the DFM will represent a key milestone in its development journey, as it provides our members with an efficient, regulated and transparent marketplace for trading of their shares."

 

"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 DFM innovative services such as the seamless cash dividend distribution. We would like to thank the DFM for their cooperation with us to accomplish this step," noted Al Falasi.

 

Union Coop’s operations witnessed a remarkable expansion over the past years from two branches in 1984 to 24 branches and 4 malls in 2021. Within the same context, number of its members reached to 36,659 members at the end of 2021 compared to 315 members in 1984.

 

Welcoming the move, Hamed Ali, CEO of DFM and Nasdaq Dubai, said: "This imminent listing underlines the joint efforts between the DFM 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."

 

"We are pleased to welcome the first listing by a retail coop in the UAE, as the emergence of a promising prospects for listing of more cooperatives in the future," he stated.

 

"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 highly efficient, transparent, diversified and deep financial marketplace," he added.-TradeArabia News Service