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DP World to raise $3.5bn in IPO offering

Dubai: Dubai's state-owned DP World may launch an initial public offering as part of a range of financing measures as it seeks to raise about $3.5 billion for projects and operations, the company's chairman said. "We are now analyzing financing options." DP World's Sultan bin Sulayem said. "It might be an IPO, more bonds or even borrowing from banks," he added. Mr. Sulayem didn't provide further details but noted that funds needed might exceed $3.5 billion, depending on the company's needs. "We'll decide on the size and source of funds in due course," he added. DP World's parent, Ports, Customs and Free Zone Co., or PCFC, sold $3.5 billion of partially-convertible sukuk in January 2006. The Dubai government will sell up to 30 per cent of its shares in the world's third-largest container port business, the London-based Middle East Economic Digest reported in its latest issue. A source familiar with the plan said on September 11 that DP World would sell 20pc of its shares to the public this year to raise as much as $4.2bn to finance growth. Another source said that DP World was planning to sell a stake of around 20pc but could not give the value of the deal. A $4.2bn share sale would make it the largest IPO in the Middle East, topping the $4.1bn raised by Saudi Telecom in 2003. At $3.5bn, the IPO would be the region's second largest. "Further details of any sale remain a closely guarded secret and the move is subject to approval by Shsikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai," the magazine said. The company considers an IPO among its financing options every year, Sulayem said earlier. Dubai set up the DIFX in 2005 to operate according to international regulatory standards in order to encourage local companies to sell shares to the public and for foreign companies to tap the region's oil-driven wealth. Dubai agreed last month to sell a 33pc stake in DIFX to the Nasdaq Stock Market under a deal that would give the US bourse operator control of Nordic exchange company OMX.

 

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