Shares in DP World, Dubai's global ports operator, climbed to a three-week high yesterday on optimism about its proposed London listing. The NASDAQ Dubai-quoted stock surged by 6.7 per cent in early trading as investors took on board the possibility that DP World could use the London listing to increase liquidity and raise capital. They closed later at 42.5 cents, up 4.9 per cent, accounting for all the day's turnover on NASDAQ Dubai, with 7.5 million shares traded.
The London plans are still at an early stage and no decision has been made, but the company is believed to be examining proposals to broaden its shareholder base in the London listing. It could place new shares and raise money via a rights issue. Its 77 per cent owner, Dubai World, could also sell down some of its holding. Dubai World is in talks with creditors over the terms of a US$26 billion (Dh95.49bn) restructuring, but DP World is not included.
Rob McKinnon, the head of sales at ASAS Capital in Dubai, said: "I've heard talk recently of a 45 per cent upside in [DP World] shares. Once the Dubai World situation is clarified, it's a fabulous asset. It would help Dubai markets in general, if it could get a dual listing away successfully in London." DP World and its advisers, Deutsche Bank and Citigroup, are in a race against time to finalise the complex mechanism for a listing in London by the end of the first half of this year. If that "window" is missed, the next opportunity will occur in September, after DP World's interim results.
Further details are expected to emerge at the time of its full-year results later this month. A spokeswoman for DP World said: "This is speculation, and we do not comment on speculation." email@example.com