UAE’s largest retail cooperative Union Coop has announced its intention to float on the Dubai stock market – becoming the latest in string of initial public offerings in the region.
The supermarket chain, which operates 23 branches across the Emirates, will offer existing shareholders ten shares in the listing for each share shared.
Trading of shares on its own portal has been suspend, and will resume on the Dubai Financial Market (DFM) on July 18, it said in a statement. Share price will be determined on the first day of trading.
“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,” Khalid Al Falasi, chief executive officer of Union Coop, said.
The move comes as the UAE aims to boost its capital markets, increasing the stock market size to AED 3 trillion.
“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 AED 3 trillion,” Hamed Ali, chief executive officer of DFM, said.
Earlier this year, the UAE approved a decision to allow cooperative associations to trade their shares on local financial markets.
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