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Shares of Dubai Ports World (DP World), the world’s fourth-largest container port handler, rose 4.62 per cent to $1.36 during its first day of trading and following a successful initial public offering.
The stock, whose IPO price was $1.30, rose as high as $1.44 on the Dubai International Financial Exchange (DIFX) before the close of trading day.
The IPO was 15 times oversubscribed at $4.96 billion, making it the biggest in the Middle East, according to a Press statement from DP World.
“This is a proud and historic day for Dubai World, DP World and Dubai itself,” Sultan Ahmed bin Sulayem, chairman of Dubai World and DP World, said in a statement. “Investors have understood that DP World has a compelling story and is a unique investment.”
Reuters also quoted Wadah Al Taha, head of research at brokerage firm Emaar Financial Services as saying that a price over $1.50 would be a “good price”. Al Taha said this could be achieved through a dual listing.
DIFX has barely attracted investors since it began operations in 2005. All its other 12 listed companies have shares listed elsewhere.
Sulayem has ruled out any immediate secondary listing for DP World’s stock.
DIFX, the Middle East’s international exchange, welcomed the listing of DP World, the first by a UAE company. Its chairman, Soud Ba’alawy, described it as a “milestone” in the growth of the exchange as a leading international platform.
“It highlights the emergence of the exchange as the ideal market for companies seeking international and regional institutional investment, together with retail investment from the exchange’s own wealthy region,” he said.
Sulayem said he was delighted that there have been many investors from the UAE and other GCC countries. He added that DP World, wholly owned by Dubai World until the IPO, has an investor base of over 50,000 individuals and some 200 institutions.
“We would like to welcome our investors,” he said. “DP World is committed to bringing value to both its shareholders and its customers today and tomorrow,” he stressed. DP World said the sole shareholder, Dubai World subsidiary Port and Free Zone World, listed 3.818 billion shares, or 23 per cent of the company, priced at $1.30 each. It had announced the indicative range of $1-1.30. The final allocation included an extra 498 million shares due to high demand.
Sulayem cited DIFX’s strong regional and international links and regulatory standards as beneficial to DP World.
Essa Kazim, chairman of Borse Dubai, the holding company for DIFX and Dubai Financial Market, said the listing of DP World must inspire other leading local companies as well as regional and international firms to follow suit.
Borse Dubai and DIFX Chief Executive Per Larsson said DP World is an “anchor” listing and proof that the exchange has established strong links with regional and international brokers and investors.
Hamid Ali, executive officer of DIFX, was thrilled that DP World’s IPO had many subscribers from the UAE and the whole GCC region. “The DIFX has a healthy pipeline of further initial public offerings and other share issues, as well as of conventional bonds, sukuk and structured products,” he said. |
