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Wed 6 Apr 2011 05:29 PM

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DP World seeks approval on share swap ahead of London listing  

Dubai state-backed ports operator plans dual listing in London in second quarter

DP World seeks approval on share swap ahead of London listing  
DP World plans a second listing in London in the second quarter

DP
World Ltd, the Dubai World-controlled company that operates ports from Europe
to Asia, will seek investors’ approval to combine 20 shares into one before a
dual listing on the London Stock Exchange.

The
consolidation “will better position DP World’s share price alongside global
companies,” DP World said in an e-mailed statement today. Shareholders will
receive one $2 share for every 20 existing shares of 10 cents each. Trading in
the new shares is likely to begin on May 19.

The
move will have “very little impact other than to increase the notional value of
EPS and dividends,” said Julian Bruce, equity sales head at EFG-Hermes Holding
in Dubai. There are “some suggestions that the move would also avoid the issue
of the stock being listed in London as a penny share,” he said.

DP
World raised $4.96bn in the Middle East’s biggest initial public offering in
November 2007 and trades on Nasdaq Dubai. It said last year it would seek a
listing on the London Stock Exchange to improve investors’ perception of its
value after the shares slumped.

The
free float, or shares available to investors, will remain at 19.55 percent,
while the number in issue will drop from 16.6 billion to 830 million, DP World
said. Shareholders are scheduled to vote on the plan May 11.

It
said in March that it’s committed to completing the London listing in a “timely
manner” in the second quarter. It’s arranging for the issue of “depository
interests” to facilitate trading in London.

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