By Andy Sambidge
Ports operator says decision taken after discussions with shareholders, advisors.
Ports operator DP World on Wednesday announced it was intending to seek a premium listing on the London Stock Exchange.
The listing, which the company aims to start in the second quarter of 2010, would be in addition to its primary listing on Nasdaq Dubai.
Since listing on Nasdaq Dubai in November 2007, DP World's shares have struggled. The stock was up 2.6 percent at $0.435 on Wednesday, down about 67 percent on its IPO price of $1.30.
In March 2009, the Board of DP World, the world's fourth biggest ports operator, stated it would evaluate all available options to address its continued disappointment with the market's valuation of the company.
"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," the company said in a statement posted on the Nasdaq Dubai website.
"The Board remains committed to our shareholders in the region and believe that they will also benefit from this move," it added.
On Monday, DP World said it had bought Royal Dutch Shell’s remaining stake in its planned London Gateway port project for $220 million.
DP World also decided to proceed with the construction of “essential infrastructure” for the project after its board reviewed options “in light of the current market downturn,” the company said in a regulatory statement today.
The London Gateway project involves redeveloping a former oil refinery on the River Thames at Thurrock and building a deep water port.