Despite laudable efforts at transparency in its investor and public relations, there is still a fog of uncertainty surrounding DP World. This is not so much in terms of its own affairs – the ports and shipping business quoted on Nasdaq Dubai has arguably made more progress towards achieving international standards of corporate governance than any other UAE corporate.
It is the relationship with its parent, Dubai World, that confuses and perplexes. Since flotation in late 2007, just before world markets began to teeter towards the credit-crunch cliff, the parent company has continued to regard DP World as more or less its own private company, pulling in dividends but not really addressing the central concern for other shareholders: the destruction in investor value that has been its hallmark as a quoted company.
Floated at $1.30, the shares have never since traded at that level. After last week’s trading statement, they slipped back again to close at $0.50. Worth more than $20 billion on its IPO, DP World is now worth just over $8 billion (Dh29bn).
No comments:
Post a Comment