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Thu 13 Dec 2007 04:34 PM

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Further Dubai World IPOs ruled out

State conglomerate's companies will continue to grow organically, says DP World executive.

Dubai World has no plans to list any of its other group companies following the initial public offering (IPO) of DP World, according to a senior executive at the ports operator.

Media have previously reported that the group's property arm Nakheel might list shares on the Dubai International Financial Exchange (DIFX) as early as 2009.

"When it comes to other companies within Dubai World, whether it be Nakheel or Jafza, it's not warranted and we aren't looking at floating shares for these companies," Jamal Majid bin Thania, executive vice chairman of DP World and group CEO of Ports & Free Zones World (P&FZ World), told Sea Freight Middle East.

"I don't foresee any IPOs on the horizon; rather these companies will continue to grow organically."

Thania said he was optimistic about the future of DP World and felt it would benefit from its new investor base.

"During our global roadshow we concentrated on attracting many of the European, Eastern and American financial players," he said.

"We've studied the financial institutional market, and their response to the IPO, and have been very encouraged by their positive reaction."

Dubai World listed shares in DP World on the DIFX on November 26. However the stock has not performed as well as expected and on Thursday shares plunged more than 5% to end at their lowest level since they started trading, as investors dumped the stock amid concerns over the dollar's weakness.

The world's fourth-largest container port operator ended at $1.18 after falling 5.6%, its sharpest one-day drop since listing at an initial price of $1.30.

Thania also said Dubai World had no specific plans to increase its use of Islamic finance, but was open to different methods of financing.

Previously, Nakheel and Dubai Ports, Customs and Free Zone Corporation (PCFC) have issued sukuk, or Islamic bonds, worth $3.52 billion and $3.5 billion respectively.

Nakheel announced this month it is to launch a $750 million sukuk issue that will be convertible to equity in certain circumstances.

The full interview with Jamal Majid bin Thania will be published in Sea Freight Middle East in January.

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