DP World LSE listing may prompt Dubai stake sale

State-backed Dubai World owns 80% of the port operator, one of its most profitable units
DP World LSE listing may prompt Dubai stake sale
DP World raised $4.96bn in the Middle East’s biggest initial public offering in November 2007
By Staff writer
Thu 12 May 2011 02:55 PM

DP World's planned dual listing on the London Stock Exchange
may prompt a stake sale by majority shareholder Dubai World, a report by
investment bank JP Morgan said.

State-owned conglomerate Dubai World owns 80 percent of the
port operator, which is considered one of its more profitable assets.

"This [London listing] remains a key milestone in
clearing the path to an improved liquidity through a broader investor
participation and/or potential selling by majority shareholder Dubai
World," the report, dated May 11, said.

DP World said Wednesday that it would list on the LSE by end
of May or early June.

“Subject to completion of the UKLA admission process, we
remain on track to list on the London Stock Exchange around the end of May or
early June,” Mohammed Sharaf, CEO of DP World, said in a statement to Nasdaq
Dubai.

The company said a one-for-20 share consolidation will take
effect from May 19 adding that its free float would remain unchanged at 19.55
percent

The company, the world’s third largest port operator, raised
$4.96bn in the Middle East’s biggest initial public offering in November 2007
and trades on Nasdaq Dubai.

Last year it said it would seek a dual listing on the London
bourse in a bid to boost investor appetite.

In April, the company sold its stake in P&O Trans
Australia (POTA) to its partner in the firm, Qube Logistics, in a deal valued
at AS106m.

The company in December agreed to sell 75 percent of its
Australian operations to Citi Infrastructure Investors for $1.5bn, in a bid to
reduce net debt.

For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.