Mair Group to Directly List on ADX
Introduction
Mair Group is set to make an important move. The Abu Dhabi-based investment company will directly list on the Abu Dhabi Securities Exchange (ADX) next month. This decision reflects the growing trend of UAE companies entering local capital markets.
Details of the Listing
Mair Group operates over 100 stores under the Adcoop and Spar brands. Their trading on the ADX will begin on December 9. They plan to conduct a direct listing. This means they will skip the traditional initial public offering (IPO) process. Instead, existing shares owned by investors and employees will be offered to the public. This method does not require underwriters or a lock-up period. Many view this as a cost-effective alternative to traditional IPOs.
A Message from the CEO
Nehayan Al Ameri, Managing Director and CEO of Mair Group, expressed enthusiasm about the listing. “We are excited to enter the financial markets through a direct listing on the ADX. Our goal is to enhance our impact, solidify our foundations, and invite stakeholders to join us on this journey,” he stated.
Financial Performance
Mair Group reported strong financial results. In the first half of this year, the group posted revenues of Dh1.2 billion (approximately $326.7 million). For the entire year of 2023, revenues are projected to reach Dh2 billion. The company also distributed Dh135 million in dividends. This represents around 12.11% of its share capital and benefits over 12,000 shareholders.
Real Estate Ventures
The group’s real estate branch, Makani, plays a crucial role in its operations. Makani manages more than 12 shopping centres, including the Mall of Al Ain and Makani Community Centres. They maintain a high occupancy rate of 95% across 330,000 square meters of leasable area, showcasing their success in the commercial real estate sector.
Rebranding Initiatives
Mair Group’s listing announcement coincided with the Abu Dhabi Global Food Week. During this event, the company disclosed plans to consolidate its seven retail brands. These brands include Abu Dhabi Coop, Al Ain Coop, Al Dhafra Coop, Delma Coop, Coops, Earth, and Mega Mart. The group will rebrand all these stores under the Adcoop name. This rebranding effort aims to promote sustainable growth and enhances the UAE’s food security.
A Broader Market Context
Mair Group’s upcoming listing is part of a larger trend in the UAE’s capital markets. The stock market has reached a significant milestone, boasting a market capitalization of $1 trillion. This growth follows significant IPOs such as that of UAE retail giant Lulu Group, which raised $1.72 billion. This marked the largest IPO in the country for the year. Other notable listings include ADNH Catering, which raised $235.2 million, and NMDC Energy, which raised $877 million.
Investments in Food Security
Beyond food retail, Mair Group is making strategic investments in the fast-moving consumer goods (FMCG) sector. Their investments include participation in Al Masa Mills. These initiatives align with the UAE’s vision for improving food supply resilience and enhancing food security. Campaigns like “Plant the Emirates” further highlight the government’s commitment to boosting the country’s agriculture sector.
Commitment to Growth
Mohamed Al Shamisi, Chairman of Mair Group, emphasized the company’s commitment to the food sector. He stated, “Mair Group is dedicated to investing in the food sector to foster both economic and social growth in the UAE.” The company collaborates with over 100 local farmers. This collaboration is part of its farm-to-fork strategy. It champions sustainable agricultural practices and supports home-grown produce.
Conclusion
With the upcoming listing on the ADX, Mair Group is poised for further growth. The company aims to cement its position in the UAE’s retail and real estate sectors. Their efforts will contribute to the country’s broader goals of sustainable development and food security. As they prepare for this new chapter, Mair Group looks forward to strengthening its influence in the market while continuing to serve the community.
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