DP World, which is 80 per cent owned by Dubai World, is to seek a listing on the London Stock Exchange, in a move that deals a further blow to Dubai’s battered financial markets.
DP World, which owns P&O, said it would seek a second primary listing in London this spring “to address its continued disappointment with the [Dubai] market’s valuation of the company”.
The company floated on the Nasdaq Dubai in November 2007 but its shares have since fallen between its IPO price.
According to the Financial Times, insiders said Dubai World is considering raising cash in the London listing by selling down its stake.
DP World bought P&O for £3.92bn in 2006 using a $3.5bn convertible sukuk (a sharia compliant bond).
Insiders have blamed the sukuk for the weak performance of the shares. DP World had to list to convert the bond into equity. Sources said investors, as reluctant holders, have been keen to sell, putting pressure on the shares.
But it is believed there is strong institutional interest in maritime stock in London as there are no longer any large UK-traded ports companies following the P&O sale and private equity acquisition of Associated British Ports.