Dubai Ports to sell more shares in $5 bln IPO
Dubai increased the stake it will sell in port operator DP World to 23 percent from 20 percent, on Monday saying strong demand would allow it to raise up to $4.96 billion from the Middle East's largest initial public offering.
DP World, the fourth-largest mover of containers, will sell 3.245 billion shares plus a greenshoe, over-allotment option of 572.7 million shares, the company's state-owned parent, Dubai World, said in a statement.
"We have seen strong demand both internationally from institutional investors and in the UAE from retail investors," Dubai World Chairman Sultan Bin Sulayem said in a statement.
DP World had been looking to sell 2.822 billion shares priced at between $1 and $1.30 each, and probably a further 498 million shares as part of the greenshoe option to raise a total of $4.32 billion at the top of the range.
Of the IPO proceeds, 25 percent will go to investors who bought $3.5 billion of Islamic bonds that DP World's then owner -- Ports, Customs & Freezone Corp -- sold in 2005.
The bonds, of which as much as 30 percent of the value are convertible to shares in DP World, mature in January.
DP World, which last year bought British port operator P&O for $6.8 billion, manages 42 terminals in 22 countries.
It plans to almost double capacity to 90 million containers by 2017, expanding in countries including the UAE and China.
Final pricing for the DP World sale, the biggest since Saudi Telecom Coraised $2.72 billion in 2003, should take place around Nov. 21, Dubai World said. (Editing by Quentin Bryar REUTERS)
DP World, the fourth-largest mover of containers, will sell 3.245 billion shares plus a greenshoe, over-allotment option of 572.7 million shares, the company's state-owned parent, Dubai World, said in a statement.
"We have seen strong demand both internationally from institutional investors and in the UAE from retail investors," Dubai World Chairman Sultan Bin Sulayem said in a statement.
DP World had been looking to sell 2.822 billion shares priced at between $1 and $1.30 each, and probably a further 498 million shares as part of the greenshoe option to raise a total of $4.32 billion at the top of the range.
Of the IPO proceeds, 25 percent will go to investors who bought $3.5 billion of Islamic bonds that DP World's then owner -- Ports, Customs & Freezone Corp -- sold in 2005.
The bonds, of which as much as 30 percent of the value are convertible to shares in DP World, mature in January.
DP World, which last year bought British port operator P&O for $6.8 billion, manages 42 terminals in 22 countries.
It plans to almost double capacity to 90 million containers by 2017, expanding in countries including the UAE and China.
Final pricing for the DP World sale, the biggest since Saudi Telecom Coraised $2.72 billion in 2003, should take place around Nov. 21, Dubai World said. (Editing by Quentin Bryar REUTERS)
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