[2007-10-22]  DP World Sells 20% of Shares in Public Offer
DP World yesterday announced that it will sell around 20 percent of its shares in an initial public offering (IPO) starting Nov. 4.

"This is an exciting day for us. DP World is one of the jewels in the crown of Dubai World and we are delighted it will be the first home-grown Dubai company to be listed on the DIFX," Dubai World Chairman Sultan Ahmed ibn Sulayem told reporters yesterday.

"DP World will give investors an indicative price range for the shares," said Ibn Sulayem. "The sale would repay a $3.5 billion bond and provide cash to the government", he added.

Shares will remain on sale until Nov. 16, while a minimum value for a single underwriting was set at $6,000, a DP world officials said.

"Today marks another step in the development of DP World from a local to a regional to a global player. But importantly, it also signals the clear intent by Dubai World and Dubai itself to be active participants in the international financial markets, with all the opportunities and responsibilities this brings," Sulayem added.

DP World, which was the world's fourth-largest container terminal handler in 2006, will list shares on the Dubai International Financial Exchange on Nov. 26 after an international book-building process assisted by four banks. Merrill Lynch, Deutsche Bank and Shuaa Capital ? the Dubai-based regional investment bank and Millennium Finance, an investment bank majority owned by Dubai Islamic Bank, will jointly determine the IPO price offer.

According to DP world officials, the stock will be offered to the UAE residents, Gulf Arab nationals and corporations and to institutional investors elsewhere. UAE applications will close Nov. 15 and pricing will be Nov. 21, when the offer closes for institutions, DP said in a statement.

"Although DP World is global, it is a Dubai-based company with strong roots here. It has supported and continues to support the growth of Dubai and the UAE. Those who live and work here are justifiably proud of DP World's international reputation as a leading provider of marine terminal services. We are very keen that they participate in DP World's future," Sulayem said.

A parent company of DP World issued in January 2006 $3.5 billion worth of convertible Islamic bonds called sukuk which are scheduled to mature in 2008. Bond investors can participate in the public offer. "Some of the cash from the IPO would be used to pay back Islamic bonds", Sulayem said.

DP World has earmarked $3.5 billion on new projects over the next five years. It is also looking at doubling handling capacity to 84 million 20-foot containers a year by 2016 to catch up with competitors.

The IPO follows Dubai's purchase of stakes in NASDAQ Stock Market Inc. and London Stock Exchange Group Ltd. as the emirate vies with Qatar and Bahrain to be the region's dominant financial center.

DP World had 2006 revenue of $2.1 billion, excluding joint ventures and associates, according to a company statement. Sales for the six months ended June 30 were $1.2 billion, it said.

Valued at approximately $20 billion, DP World runs 42 terminals and 13 new developments across 27 countries from the Americas to Asia.





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