Jun 01 2011 |
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DP World Lists Shares In London As Hopes For Govt Stake Selldown Grow
Wednesday, Jun 01, 2011
By Nikhil Lohade and Tim Falconer
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Dubai-based ports operator DP World (DPW.DIF) made its long awaited debut on the London Stock Exchange Wednesday, amid growing hopes the company's main government-controlled shareholder will soon sell down some of its 80% stake.
DP World 's LSE debut is part of a broader push to lift its international profile, boost liquidity and ultimately lift its flagging share price. The listing also coincides with a purple patch in terms of earnings for the ports operator, which has enjoyed a rebound in global container traffic as the global economy improved.
At about 1200 GMT, DP World shares were trading at 840 pence in London, with 170,000 shares having changed hands. The stock finished trading Wednesday 0.9% higher at $13.57 on the Nasdaq Dubai exchange with 292,000 shares traded.
DP World originally issued shares at $1.30 each in its near $5 billion initial public offering in 2007. After a 1-for-20 share consolidation last month, its adjusted IPO price stood at $26, almost double Wednesday's Nasdaq Dubai closing level.
Analysts at JP Morgan said the listing of DP World shares on the LSE should drive only some marginal interest but it "clears the path to an eventual improvement of the free float--the timing of which is solely at the discretion of parent Dubai World ."
DP World 's Chief Executive Mohammed Sharaf told Zawya Dow Jones Tuesday that he believed the company wasn't being fairly rated, or valued through its single listing on Nasdaq Dubai .
"Coming to London will give a window to what you call emerging markets funds who would very much like to invest in a long term strong infrastructure like ours," he said.
Sharaf also said the company's fundamentals make it an attractive investment proposition especially given DP World 's global presence in an industry that sees nearly 90% of global trade happening through water and " DP World being the only player with presence in all six continents."
-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com
(Leila Hatoum in Dubai contributed to this article.)
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
01-06-11 1216GMT
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