DUBAI, 5 November 2007 — DP World yesterday launched an initial public offering for 17 percent of its shares in one of the biggest ever flotations in the region. The intention to float up to 20 percent of DP World was announced on Oct. 21. Shares will remain on sale until Nov.15 and are expected to list on the Dubai International Financial Exchange (DIFX) toward the end of November.
Some 2.822 billion of DP World shares, or 17 percent of its equity, are available at a price of between $1 and $1.30 a share. It may sell another 498 million shares, or 3 percent, depending on the outcome of the IPO, company officials said in a press conference yesterday at the Dubai International Financial Center (DIFC).
Sultan Ahmed ibn Sulayem, chairman of Dubai World and DP World, Jamal Majid ibn Thaniah, DP World executive vice chairman and Group CEO of P&FZ World, Mohammed Sharaf, DP World CEO and Yuvraj Narayan, DP World CFO were present at the IPO launching ceremony.
The offer, which could be expanded to up to 20 percent of the firm’s shares, is open to citizens and residents of the UAE and its Gulf Arab partners Bahrain, Kuwait, Oman, Qatar and Saudi Arabia. The shares will also be offered globally to some institutional investors.
“DP World has grown from strength to strength since it began with just one port in Dubai some 35 years ago. Today, with 42 terminals in 22 countries, DP World is one of the most geographically diverse port operators in the world. Its capable international management team has delivered solid performances measured both by increased container throughput and by strong financial results,” Ibn Sulayem said.
“The indicative price range reflects DP World’s strong reputation internationally and confidence in its future,” Ibn Thaniah said.
On Oct. 31, the company announced it had moved into the Egyptian maritime market for the first time, buying a 90 percent stake in a container port operator for $670 million.
“Our corporate strategy is simple: to grow in a way that meets our customers’ needs into the future and provides value for our shareholders. We have a strong track record of winning concessions globally and we constantly look for new opportunities in both developing and developed markets,” Sharaf said.
