Dubai: The supermarket operator Union Coop will be listing on Dubai Financial Market July 18, aimed at expanding the local stock market’s market size to Dh3 trillion in the medium-term.
Union Coop will go for a stock split on a 1:10 basis. The share price will be determined on the first day of trading. Its shareholding is split among 30,000 plus UAE Nationals.
Union Co-op has also suspended all trading on its shares through the its portal from today. The retailer’s stock is traded through its platform. Operating more than 20 locations in Dubai, Union Co-op came up with a net profit of Dh116.5 million in the first three months of the year. The figures represent a 20.5 per cent CAGR (compound annual growth rate) on the net profit and 16.85 per cent for its sales.
For 2021, the net profit was Dh413 million. “The listing of Union Coop shares 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,” said Khalid Al Falasi, CEO. “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.”
According to reports, LuLu Group is the other hyper/supermarket operator heading for a stock market listing.
About the Union Co-op move, Hamed Ali, CEO of DFM and Nasdaq Dubai, said: "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."
- What Union Co-op shareholders can expect:
- Members who have an investor number with DFM and a trading account with a licensed brokerage firm will be able to trade their shares.
- Union Co-op has advised members who do not have an investor number and a trading account to complete these two steps through the DFM investor services or brokerage company, as well as through the website and smartphone apps of DFM.