Shares of Dubai Ports World rose as much as 10.8% on their trading debut on Monday after the world's fourth-largest container port handler raised almost $5 billion in an initial public offering (IPO).
The stock rose to as high as $1.44 on the Dubai International Financial Exchange (DIFX), compared with the IPO price of $1.30. The shares were up 5.38% at 0949 GMT.
The listing is a test for the DIFX, which has barely attracted investor interest after a 2005 start trumpeted as the birth of the Arab Hong Kong. All the other 12 companies listed on the exchange have shares listed elsewhere.
"The lack of liquidity in DIFX may have a negative impact on trading in shares of DP World," said Wadah Al-Taha, head of research at brokerage company Emaar Financial Services. "Any price above $1.50 would be a good price... this could be achieved through a dual listing."
More than 208 million DP World shares traded on Monday. Investors offered about $65 billion towards the IPO, the Middle East's biggest.
DP World Chairman Sultan bin Sulayem has repeatedly ruled out any immediate secondary listing for the company's stock.
By contrast, shares of Hamburg port operator HHLA, which raised 1.16 billion euros ($1.72 billion) in an IPO that was 10 times oversubscribed, have risen 8.3% since they started trading on November 2.
DP World, which was forced to sell its US assets due to security concerns, is considering making acquisitions in the US, Chief Executive Mohammed Sharaf said on Monday.
"We are reviewing it," Sharaf told reporters in Dubai, when asked about the possibility of buying in the US. "We are looking at the US market and we're looking at different areas," he said, declining to be more specific.
State-controlled DP World was forced to sell its US assets after agreeing to buy P&O for $6.8 billion last year. P&O operated at six terminals in the US.
DP World's net profit is expected to rise 55% next year to $564 million, and to $630 million in 2009 and as much as $923 million in 2011, according to research by Dubai-based Shuaa Capital, one of the four arranging banks. This implies the company is valued at 38 times expected 2008 earnings.
DP World sold 3.818 billion shares - equivalent to 23% of the company - at $1.30 each, at the top of a range that was as low as $1.00. Source
The stock rose to as high as $1.44 on the Dubai International Financial Exchange (DIFX), compared with the IPO price of $1.30. The shares were up 5.38% at 0949 GMT.
The listing is a test for the DIFX, which has barely attracted investor interest after a 2005 start trumpeted as the birth of the Arab Hong Kong. All the other 12 companies listed on the exchange have shares listed elsewhere.
"The lack of liquidity in DIFX may have a negative impact on trading in shares of DP World," said Wadah Al-Taha, head of research at brokerage company Emaar Financial Services. "Any price above $1.50 would be a good price... this could be achieved through a dual listing."
More than 208 million DP World shares traded on Monday. Investors offered about $65 billion towards the IPO, the Middle East's biggest.
DP World Chairman Sultan bin Sulayem has repeatedly ruled out any immediate secondary listing for the company's stock.
By contrast, shares of Hamburg port operator HHLA, which raised 1.16 billion euros ($1.72 billion) in an IPO that was 10 times oversubscribed, have risen 8.3% since they started trading on November 2.
DP World, which was forced to sell its US assets due to security concerns, is considering making acquisitions in the US, Chief Executive Mohammed Sharaf said on Monday.
"We are reviewing it," Sharaf told reporters in Dubai, when asked about the possibility of buying in the US. "We are looking at the US market and we're looking at different areas," he said, declining to be more specific.
State-controlled DP World was forced to sell its US assets after agreeing to buy P&O for $6.8 billion last year. P&O operated at six terminals in the US.
DP World's net profit is expected to rise 55% next year to $564 million, and to $630 million in 2009 and as much as $923 million in 2011, according to research by Dubai-based Shuaa Capital, one of the four arranging banks. This implies the company is valued at 38 times expected 2008 earnings.
DP World sold 3.818 billion shares - equivalent to 23% of the company - at $1.30 each, at the top of a range that was as low as $1.00. Source
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