Thursday 7 January 2010

P&O in UK return as Dubai plans London float

Delivering a much-needed vote of confidence in UK markets, DP World said it would seek a second primary listing on the London Stock Exchange "to address its continued disappointment with the [Dubai] market's valuation of the company".

DP World, the world's fourth-largest port group, floated on the Nasdaq Dubai in November 2007 but, after a brief rally, the shares dropped beneath their $1.30 list price. The stock rose 4pc to 44 cents on news of the dual-listing plans, valuing the business at $7.34bn (£4.5bn).

The company is four-fifths owned by Dubai World , the property conglomerate that sent shockwaves round the region after threatening to default on its debts last year. Insiders said Dubai World is considering raising cash in a UK listing by selling down its stake. Marketing in the company will now begin, which could also result in new equity being issued. A DP World spokesman said no decision had yet been made.

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