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Dubai-based retailer Union Coop is weighing a transition to a public joint-stock company from a consumer cooperative society, which had direct-listed its shares on the Dubai Financial Market (DFM).
In July 2022, Union Coop listed on the DFM with existing shareholders being offered ten shares for each share held.
Upon listing, its share price declined from 3.9 dirhams ($1.06). On Tuesday, it was trading at AED 2.32, according to LSEG data.
The retailer’s current plan to transition to a public joint-stock company comes close on the heels of UAE supermarkets Lulu Retail Holdings Plc and Spinneys listing their stocks on the Abu Dhabi Securities Exchange and the DFM, respectively.
The retailer said the board decided to study a potential move to “maximize its financial resources, increase its competitive capabilities, and achieve its strategic goals.”
Dubai-based law firm Al Tamimi & Company has been appointed to study the transition.
For nine-month 2024, Union Coop posted a net profit of AED 163 million on a revenue of AED 1.28 billion, LSEG data showed.
(Reporting by Brinda Darasha; editing by Seban Scaria)
