DP World, a subsidiary of Dubai World, announced that from 1st of June its stock will be traded on London Stock Exchange (LSE).
DP World is currently listed on Nasdaq Dubai but shareholders have been concerned about liquidity levels on the bourse. With dual listing on Nasdaq and the LSE, DP World aims to track a wider range of investors. The prospectus was published yesterday.
“This is the next step in the evolution of DP World,” said Sultan Ahmad Bin Sulayem, DP World’s chairman. “Our investors have been seeking an alternative listing and we have now received formal approval from the UK Listing Authority for a premium listing on the London Stock Exchange.”
Last year, DP World was one of the most traded companies on Nasdaq Dubai. However, total trading volumes on the exchange fell by 15 per cent in 2010, reflecting a trend in Middle Eastern markets ravaged in the political unrest happening in the region.
Standard & Poor’s revised its outlook for DP World to positive from stable yesterday. The ratings agency said the ports operator’s financial risk profile would improve when it will complete the 75 per cent sale of its shares in DP World Australia. The company’s share price fell 1.84 per cent to $13.35 on the Nasdaq Dubai.
Bin Sulayem said “This [London flotation] will complement our listing on the Nasdaq Dubai and will lead to an increase in the number of shareholders who can invest in the company. We are not releasing any further shares so we are not expecting a significant change in the share price; we have always maintained the 20 per cent ratio. This is merely a dual listing and shares will be freely transferable between the two exchanges”.