#Dubai’s Union Coop Slumps on Debut as Gulf IPO Boom Loses Steam - Bloomberg

Dubai’s Union Coop Slumps on Debut as Gulf IPO Boom Loses Steam - Bloomberg

Union Coop traded 18% below an indicated price on its Dubai debut, the latest sign of waning demand for Middle Eastern offerings.

Shares in the supermarket operator pared some losses to trade down 13% at 3.41 dirhams at 12 p.m. in Dubai, valuing the company at 6 billion dirhams ($1.64 billion.) The indicative share price had been set at 3.9 dirhams.

Union Coop’s slump is the latest indication that the Gulf IPO boom may be losing momentum. The Middle East was one of the few bright spots in the market for new share sales, but demand for risky assets has waned and equity benchmarks are trading well below their peaks in May.

Business park operator Tecom Group slumped 17% on debut this month, becoming the first Dubai listing in over four years to end the day in the red. Dubai Electricity & Water Authority surged 20% on debut in April, but has since given up most gains.

The slowdown is hitting listings in neighboring Saudi Arabia as well. The Al Othaim family scrapped plans to sell shares in its malls business this month, while shares in developer Retal Urban Development Co. are down about 1% since listing in Riyadh.

Dubai said in November it plans to sell shares in 10 companies, and has been encouraging private and family-owned businesses to follow suit. The United Arab Emirates, of which Dubai is part, in February allowed cooperative societies in the country to list shares locally.

The city is planning to privatize its Salik road-toll collection system later this year.