Thursday, January 07, 2010
DUBAI: Port operator DP World, part of troubled group Dubai World, said on Wednesday it is to seek a London listing for its shares following disappointment with its market valuation in Dubai.
The company, whose shares currently trade on the Nasdaq Dubai market, could list on the LSE as soon as the second quarter of this year, it said in a statement on the bourse website.
“After an extensive period of review with advisers, and discussions with shareholders, the board of DP World has decided to seek a premium listing on the London Stock Exchange whilst maintaining the existing primary listing on Nasdaq Dubai,” it said.
“In March 2009 the board stated it would evaluate all available options to address its continued disappointment with the markets valuation of the company.” Since listing on Nasdaq Dubai formerly the Dubai International Finance Exchange in November 2007, DP World’s shares have struggled. The stock was up 2.6 per cent at $0.435 on Wednesday, down about 67 per cent on its IPO price of $1.30.
DP World is one of the largest port operators in the world and is owned by Dubai government-linked conglomerate Dubai World, but is not included in its parent company’s $26 billion debt restructuring plans.
“Previously DP World’s management had said it was not happy with the valuation the market was putting on the company and was looking at ways to unlock value for shareholders,” said Rami Sidani, head of investment at Schroders ME. “One of the concerns would have been the lack of liquidity on the Nasdaq Dubai, so a dual listing is a good idea. The company will be more visible to international investors,” he said.
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