Company waiting for merger of Dubai’s exchanges
Dubai-headquartered global ports operator DP World has postponed plans to seek a listing on the London Stock Exchange (LSE) until a merger of Dubai’s two exchanges is complete.
DP World’s shares currently trade on Dubai’s international Nasdaq Dubai exchange, which is in the process of merging with the Dubai Financial Market (DFM) in a bid to buoy trading volumes.
The DFM announced a $121m take-over offer of Nasdaq Dubai in December 2009.
“The board has decided to postpone the listing process until an acceptable system that supports the dual listing is available,” DP world said in a statement sent to Nasdaq Dubai on 28 June. The next practical window of opportunity for the listing would be after the publication of its 2010 financial results, the company said.
DP World usually publishes its annual results in March.
The DP World board remains committed to listing the company’s shares on the LSE, the company says in the statement.
In January, the ports operator said it hoped for a secondary listing as early as the second quarter of 2010 and that the move would help address its “continued disappointment” with its market valuation. The dual listing is aimed at improving the group’s access to international investors, as well as overcoming the lack of liquidity on its home exchange, where it is currently the only daily traded share.
The group’s shares fell 6.8 per cent on the Nasdaq Dubai in the wake of the announcement.
DP World currently operates in 31 countries and has 49 terminals in operation, with a further 12 under development.
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