DP World Ltd., the Dubai World- controlled company that operates ports from Europe to Asia, will seek investors’ approval to combine 20 shares into one before a dual listing on the London Stock Exchange.
The consolidation “will better position DP World’s share price alongside global companies,” DP World said in an e-mailed statement today. Shareholders will receive one $2 share for every 20 existing shares of 10 cents each. Trading in the new shares is likely to begin on May 19.
The move will have “very little impact other than to increase the notional value of EPS and dividends,” said Julian Bruce, equity sales head at EFG-Hermes Holding in Dubai. There are “some suggestions that the move would also avoid the issue of the stock being listed in London as a penny share,” he said.
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