DP World to list on LSE
Jan 07, 2010
Dubai’s port operating giant navigates secondary listing in London
DP World is planning a premium listing on the London Stock Exchange (LSE), but the company is looking to support and not abandon its position on a troubled NASDAQ Dubai.
‘Our headquarters will stay where they are,’ says Mohammad Alhashimy of DP World’s IR team. ‘We will continue to be based in Dubai. There will be no excluding local retail investors.’
In DP World’s statement, released yesterday, the global ports operator says it will seek the premium qualification in the second quarter of 2010. The company publicly cites its dissatisfaction with its market valuation and sees the move offering access to investors, improved liquidity and a higher share price.
‘The listing will give us more exposure to international markets. As far as investors are concerned, the listing in London will provide regional investors with confidence,’ explains Alhashimy.
DP World has also confirmed that it will continue to fund the London Gateway shipping project. ‘London Gateway is not the reason we chose to list in London, but the project will raise awareness of our company,’ adds Alhashimy.
The £1.5 bn ($2.4 bn) development of the biggest deep-sea container port in Europe may help convince investors of DP World’s future commitment to the region. On January 4 it bought Shell’s remaining interest in the development, along with the final 1,000 acres of land, to dispel worries that the debts of Dubai World (DP World’s holding company) would put the infrastructure project on hold. Dubai World is the crown-owned entity rescued from its debt repayment by a $10 bn loan from the emirate of Abu Dhabi, but DP World is not included in Dubai World’s $22 bn debt restructuring.
DP World hopes to qualify for the LSE’s premium listing – a new category since October 6, 2009 – which requires higher standards of regulation and corporate governance. The process, and possible plans for a share issue, will begin after the publication of DP World’s preliminary results in March.
The company’s share price rose by 6 percent on yesterday’s announcement.