MIDDLE EAST

DP World plans flotation

20 years ago

DP World is to undertake an initial public offering within 18 months. The worlds third largest terminal operator has said that it must undertake an IPO given its global status, which has to be matched by a global shareholding base.

The $6.8bn that the company paid for P&O Ports last February and the $3bn it expects to invest in new container terminals and on expanding existing facilities will likely influence the eventual size of the IPO. Senior vice president for corporate strategy, Yuvraj Narayan commented that raising the additional capital may take place in several distinct tranches.

Deutsche Bank, Merrill Lynch, Dubai Islamic Bank and Dubai-based Shuaa Capital have all been hired as advisers, with market analysts believing that DP World is worth in the region of $10bn.