DP World in record $5 billion flotation

Source: Exec Digital UK

Date :22/11/2007 09:00:33

Dubai has sold $4.96 billion of shares in port operator DP World in the Middle East's largest IPO, valuing the world's fourth-largest container port operator at $21.58 billion.

Shares in DP World were priced at the top end of expectations at $1.30 a share, equivalent to 23 percent of the port operator.

The offer – the first by the government of Dubai - was 15 times oversubscribed.

DP World paid $6.8 billion for Britain's Peninsula & Oriental Steam Navigation Co (P&O) last year, taking its assets to 42 terminals in 22 countries.

Share demand

The pricing which values the company at 38 times expected 2008 earnings, marks a huge success for the new Dubai exchange, as an emerging capital market and for Dubai World, the state-owned conglomerate owner of DP World.

“There was a strong demand for the shares internationally amongst institutions, “Sultan Ahmed Bin Sulayem, the chairman of Dubai World and of DP World, said.

Institutional investors worldwide, as well as citizens of the six Gulf Arab oil-producing states and residents of the United Arab Emirates, were able to buy shares. Individual investors will be allotted ten percent of the shares that have been sold.

Shares in DP World will begin trading on the Dubai International Financial Exchange on Monday.

November 21, 2007