DUBAI: Port operator DP World, part of troubled group Dubai World, said on Wednesday it is to seek a London listing for its shares following disappointment with its market valuation in Dubai.
The company, whose shares currently trade on the Nasdaq Dubai market, could list on the LSE as soon as the second quarter of this year, it said in a statement on the bourse website.
"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," it said.
"In March 2009, the board... stated it would evaluate all available options to address its continued disappointment with the markets valuation of the company."
Since listing on Nasdaq Dubai — formerly the Dubai International Finance Exchange — in November 2007, DP World's shares have struggled. The stock was up 2.6% at US$0.435 (RM1.48) on Wednesday, down about 67% on its initial public offering price of US$1.30.
DP World is one of the largest port operators in the world and is owned by Dubai government-linked conglomerate Dubai World, but is not included in its parent company's US$26 billion debt restructuring plans.
"Previously, DP World's management had said it was not happy with the valuation the market was putting on the company and was looking at ways to unlock value for shareholders," said Rami Sidani, head of investment at Schroders Middle East.
"One of the concerns would have been the lack of liquidity on the Nasdaq Dubai, so a dual listing is a good idea. The company will be more visible to international investors," he said.
DP World is the only share on Nasdaq Dubai that trades on a daily basis.
The company reported in October a 6% fall in third-quarter container volumes and said its 2009 results would be in line with market expectations despite a challenging fourth quarter.
On Jan 4, DP World said it had paid regular profit and coupon obligations on a US$1.5 billion Islamic bond and another US$1.75 billion issue on time. — Reuters
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- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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