DP World seeks London listing to improve valuations

After a disappointing listing on the Nasdaq Dubai in 2007, the Debt-ridden Dubai World's ports subsidiary DP World today said it is planning to list on the London Stock Exchange in the second quarter of this year to improve its valuations.

"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. We will seek admission for listing in the second quarter of 2010," the port operator said in a statement here today.

The move follows continuous "disappointment" with DP World's market valuations. The shares of DP World has been on a downward spiral and has tanked more than 67 per cent ever since listing on the Nasdaq Dubai Exchange.

On the day of its listing (November 26, 2007) it closed at $1.36, but it is currently trading at $0.449.

The London listing is likely to be beneficial for the shareholders. Earlier in March 2009, the board had stated that "it would evaluate all available options to address its continued disappointment with the markets valuation of the company".

DP World operates 45 terminals in 29 countries and has a debt of $4.7 billion as of June 2009 and a cash balance of $3 billion. However, DP World is not included in Dubai World's $26-billion debt recast plan.

On November 25, Dubai World, which holds an 80 per cent stake in DP World, had demanded a six-month standstill on its $59-billion debt repayment.