DP World Now Looks for London Listing on the Stock Exchange

Reports show that DP World, which is about 80 percent owned by Dubai World, is now set to seek a listing on the London Stock Exchange. This is a move that deals a further blow to Dubai’s battered financial marketplace.

DP World, which owns P&O Ferries, said it would seek a second primary listing in London this coming spring. This is to address its continued disappointment with Dubai’s market valuation of the company. The company floated on the Nasdaq Dubai in November 2007. However, it has since fallen between its IPO price.

According to the Financial Times, insiders say that Dubai World is considering raising cash in the London listing by selling down its stake. DP World bought P&O Ferries for £3.92 billion in 2006. It used a $3.5 billion convertible sukuk, which is a sharia compliant bond, to do so.

However, insiders have blamed the suskuk for the weak performance of the shares. DP World had to list to convert the bond into equity. Sources said that investors have been keen to sell, putting pressure on the shares. Right now 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 P&O Ferries.

Right now there has been a lot of concern about Dubai World. However, most of this has been cleared up for the time being. The fact that Dubai World was saved could have actually avoided another recession, some experts have said. It will be interesting to see how DP World fairs on the London market come this spring.