Dubai Ports World has seen profits rise by 52% in 2007

The world's fourth-largest container port operator, Dubai Ports World, has seen its profits rise by 52% in 2007.

It earnt $419.7m (£210m) from ongoing operations and was also upbeat on its performance so far in 2008.

DP World, which has 42 terminals in 22 countries, bought UK port and ferry company P&O for $6.9bn in 2006.

However, it had to sell on the US part of that business after opposition from Congress which claimed that the takeover posed a security risk.

In 2007, DP World handled about 43 million containers.

"Trading in the first two months of 2008 has been strong with throughput well ahead of the same period last year," its chairman Sultan Ahmed bin Sulayem said. BBC

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DP World adopts plans to meet the rising demand for marine terminal services

Mohammed Al Muallem, Senior Vice President and Managing Director of DP World's UAE region, said that the company is adopting strategic development plans to meet the increasing demand for marine terminal services as the shipping industry grows at an intense pace.

Speaking at the Saudi International Ports and Maritime Transport Forum held in Jeddah earlier this week, Al Muallem said that the shipping industry is growing so intensely that by 2015 there will be a demand for moving over one billion containers at marine terminals.

Al Muallem noted that easy accessibility has made the world smaller, allowing goods to be produced and sourced in the most cost-effective manner. 'Almost 50% of current throughput and capacity are in the Far East and South East Asia region and capacity utilisation is high across all regions with an average of 80%. However, in the ports sector this reaches a practical maximum at around 85% depending on each port, and the highest capacity utilisation happens to be in those regions where DP World has strong market positions and a majority of its capacity,' he added.

He told the forum that as part of its strategic policy, DP World has set out to raise awareness of the implications of capacity crunch directly with its customers and their customers. The aim is to motivate all links of the supply chain to improve their awareness and understand the role of terminals and the implications.

Al Muallem said that DP World is constantly evolving, and proactively moving forward in its mission to develop world-class shipping facilities and ports. 'The results are seen in dramatic achievements within a short period of time. Today, DP World is the fourth largest port and terminal operator worldwide, with 43 terminals in 23 countries and future investments in 13 marine terminals,' he said.

"We achieved this ranking by expanding our operations across the Indian Subcontinent, Far East, Europe, the Americas, Australia and, of course, the UAE. His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, once said: 'The word 'impossible' is not in leaders' dictionaries. No matter how big the challenges, strong faith, determination and resolve will overcome them." Al Muallem said DP World is continuously updating its strategy and processes.

"DP World benchmarks its productivity, reliability and efficiency to the highest international standards. This is essential because it regards itself as something more than a terminal operator; DP World is an important link in the supply chain," he said.

He reminded the forum that this relentless growth will bring with it both opportunities and challenges for shipping lines. 'It will offer greater trade volumes leading to better operational economies of scale. With the global container demand forecasted to hit 500 million TEU before 2009, we need to expand significantly to meet the demand,' Al Muallem said.

"Volumes of this scale would mean that the number of mega ships would also increase significantly and with your planned developments, we are already able to cater to this market." Al Muallem stressed that DP World's UAE region is ready "to meet our customers future needs through sizeable investment in infrastructure upgrades. Through meticulous planning and a strategic focus, we will continue to provide a competitive platform for our customers allowing them to maintain their edge and to have the ability to capitalise on the growth opportunities of the Middle East." He concluded the speech underlining the fact that the efficiency of port logistics is becoming an increasingly essential component in the worldwide flow of goods and services and that port operators must strive to meet the rapidly expanding and changing needs of customers.

Captain Faisal Al Qahtani, Senior Vice President and Managing Director of DP World's Middle East region., said that DP World, Jeddah is one of the participating sponsors of the Saudi International Ports & Maritime Transport forum (SIPMT).

"This is a significant event because it provides an ideal platform for industry leaders and decision makers, trade professionals and government agencies to address current issues facing Saudi maritime and ports industry from global and regional perspectives. The participants will discuss applicable solutions to the challenges facing ports and maritime transport on both strategic and operational levels." "DP World is honoured to be part of the first SIPMT and to share its experience with other participants," Captain Faisal added. WAM

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Share price of DP World still to realise full value

The performance of DP World shares since it listed on the Dubai International Financial Exchange (DIFX) on November 26 at $1.30 a share may have disappointed some investors. For DP World, however, the fourth largest terminal ports operator in the world, the listing was a success raising $4.96 billion and being 15 times oversubscribed.

Since listing, the share price has been volatile, falling to as low as $0.79 but mainly trading between $0.88 and $0.92. Traded volumes are also considered to be relatively light.

Some of the questions that have been raised concerning the initial public offering (IPO) are that the offer price was overvalued, and the methods by which the offer was priced and shares allocated were not conveyed adequately to investors (in this case, 90 per cent of the share allocation went to international investors and 10 per cent to regional ones).

Some local investors also consider that the IPO could have been better managed (as a number of web site blogs claim). They allege that because shares were not allocated to their accounts in a timely manner they were not able to sell their shares quickly enough.

Are the observations justified? The initial offer price range, at between $1.00 and $1.30 was determined by a book-building process - the first time an IPO in the region has been priced in this way. The decision to price at the upper end of the range, at $1.30, was also permissible under DIFX rules.

One person close to the deal, who did not wish to be named, said: "There used to be a lot of certainty that investors may not be getting as high a value for their shares as they might. A book-building IPO changes the equation. It allows a company to maximise its share price. A book building IPO naturally absorbs the valuation and that is not necessarily the case with other IPOs. Investors in the region have become used to undervalued, fixed price IPOs." He added that they like to flip their shares quickly, often on the same day, to make a quick profit.

Avneesh Mishra, director, investment banking and head of investment services, at Mashreq Bank, the lead receiving bank for the UAE retail offer, said: "The pricing was decided based on the book building process which is an established international practice. If investors bid at the highest end of the range that's the price everyone pays and this was very clearly mentioned in all official communications. So the pricing was as transparent as it is in any international transaction."

As for the way in which shares were allocated, and claims that the offering could have been more welcoming to regional investors, Mishra said: "Although in percentage terms the UAE offer was less than 10 per cent of the total offer size, in absolute terms this was a large public offer in the UAE. The allocation policy was to favour the retail investor in the regional offering. It was made quite clear right in the beginning that the issue retains the right to use its discretion in arriving at the size of the UAE retail offering."

In terms of the appropriate value for DP World shares, according to analysts the current price is still below its long-term target price. But not all agree that the target price is as high as the initial offer price.

In the most recent research notes of Deutsche Bank and Shuaa Capital for example, dated January 15 and January 7 respectively, Deutsche Bank has a target price of $1.33 and calls DP World a "compelling growth story;" Shuaa has a higher target price of $1.47.

The less bullish Morgan Stanley, in a research note dated February 5, has a price target of $1.10 (at the time when DP World's share price was $0.99) based on the view that "DP world offers exciting growth prospects from capacity additions and margin expansion, and risk to near-term earnings is not a big concern". However, its discounted cashflow (DCF) bear case scenario is as low as $0.65.

In the most recent research note on DP World - one produced by HSBC and dated February 29 when DP World's share price had dipped to $0.89 - the target price is $1.05.

The multiples paid for DP World shares are also high. As Morgan Stanley states: "In this regard, we think the stock's valuation looks full, trading at about 20 times 2008e EV/EBITDA and a 2008e P/E of about 35. Its peer group trades at multiples of 14.0 and 24.1 respectively."

HSBC also notes: "DP World's stock has been weak and volatile since the IPO in November 2007. On a 2008e PE of 28.6x, it is still trading at a premium versus the global ports sector (on a PE of 27.2x)."

However, HSBC also acknowledges that this premium "is probably justified given its exposure to markets with strong growth dynamics and it appears well positioned for growth over the medium-term". In particular, it sees upside coming "from further capacity expansion and acquisitions," and "increases in utilisation of terminal capacity". The main downside risk is that "of contagion from the US on its Middle East, European and Chinese terminals," it says.

In many ways the DP World IPO has been a test case, not only for the DIFX - as the first listing on the exchange - but also because it was the first time in the region that a book-building process has been used. It is, however also a test case for investors. Are their expectations too high, expecting to make hefty gains, too quickly?

Many factors influence share price. As Mishra said: "Share price is a function of several factors including market sentiments, international market conditions and supply and demand. So, the fall in prices cannot be attributed to the offer price alone and certainly not to the IPO management."

Meanwhile, DP World was unable to comment. Its full-year results to December 31, 2007 are expected to be announced on April 7. Source

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Strong outlook for DP World’s shares

In the latest research report on DP World, HSBC Global Research has initiated a target price for the company of $1.05, less than the initial offer price of $1.30 when it listed on the Dubai International Financial Exchange (DIFX) on November 26.

The latest research note by HSBC, dated February 29, suggests that analysts may be becoming less bullish on the outlook for DP World’s shares. In the most research notes of Deutsche Bank and Shuaa Capital for example, dated on January 15 and January 7 respectively, Deutsche Bank has a target price of $1.33 and Shuaa Capital has an even higher target price of $1.47.

Even the less bullish Morgan Stanley, in a research note dated 5 February, has a price target of $1.10 (at the time when DP World’s share price was $0.99) based on the view that “DP world offers exciting growth prospects from capacity additions and margin expansion, and risk to near-term earnings is not a big concern”. Its discounted cashflow (DCF) bear case scenario is as low as $0.65 however.

HSBC says its target price of $1.05 indicates an approximate 18 per cent potential return against the share price (at the time of writing) of $0.89. It also notes: “DP World’s stock has been weak and volatile since the IPO in November 2007. On a 2008e PE of 28.6x, it is still trading at a premium versus the global ports sector (on a PE of 27.2x). This is probably justified given its exposure to markets with strong growth dynamics and it appears well positioned for growth over the medium term.”

Although HSBC recognises that upside “could come from further capacity expansion and acquisitions,” it also notes “the main downside risk is of contagion from the US on its Middle East, European and Chinese terminals.” The bank also notes that because DP World is a recent IPO and the stock has been weak “we flag this as a more risky (or volatile) investment and initiate coverage with a neutral (v) rating.”

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DP World offers AED 60,000 DAC

Global marine terminal operator, DP World on Sunday donated AED60,000 (EUR 11,000) to the Dubai Autism Centre to help children with autism to be successfully integrated into the local community.
The donation is part of DP World's ongoing commitment to support the communities around its 43 terminals across the globe.

The company began its global "Community Services" initiative last year, together with a number of its key suppliers and contractors, which aims to benefit those living around DP World's global operations. This donation is being made in conjunction with Damen, one of DP World?s key shipbuilding and marine services suppliers, a company press release said today.

Mohammed Al Muallem, Senior Vice President and Managing Director - UAE Region, DP World, said: "We are delighted to be supporting this important local charity and continuing our commitment to the local community in Dubai. The "Community Services" initiative helps us to build strong ties with the communities where we operate and also strengthens our partnerships with contractors and suppliers like Damen." On receiving the donation Mohammad Al Emadi, Director General of Dubai Autism Centre said: "Centres like the Dubai Autism Centre rely on donations and the continued support of corporations like DP World to continue their work in the local community. This generous donation from DP World and Damen allows us to provide important services to those families and children affected by Autism? Kommer Damen, Chairman of Damen added: ?We are pleased to see the Dubai Autism Centre benefit as a direct result of Damen?s working relationship with DP World. We are proud our donation can help the centre continue its invaluable work.? Founded in 2001, Dubai Autism Centre is the largest, most innovative and comprehensive nonprofit organization in the United Arab Emirates serving children with Autism Spectrum Disorders. The Centre?s mission is to successfully integrate children with Autism into the community through a holistic approach to intervention and therapies, together with a focused effort to create social awareness about Autism. (WAM)

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DP World - UAE records 19% growth in 2007

DP World's UAE region announced today that it has recorded 19 percent growth in throughput with the handling of 11 million TEUs (twenty-foot equivalent container units) at its marine terminals during 2007, as compared to 2006.

A substantial increase in throughput has also been recorded at Dubai's two ports, Jebel Ali and Port Rashid, showing a growth of 20 percent compared with 2006, to reach 10.7 million TEUs. Jebel Ali port operations alone grew by more than 25 percent, with the port handling over 9.9 million TEUs, compared with the volume handled throughout 2006.

Commenting on the impressive growth, Mohammed Al Muallem, Senior Vice President and Managing Director, DP World - UAE, said: "The growth we realised in 2007 was due to a number of factors, the most prominent of which was the increase in trade activity, with a corresponding increase in exports, imports and re-exports. Naturally, this resulted in buoyant growth.

"We have seen continued rapid growth in volumes at Jebel Ali since we first established the facility," he said. "Our determination to meet our customers' expanding needs has driven us to continuously upgrade our infrastructure, increasing the capacity of the terminal yards and supplying them with modern machinery to efficiently handle our customers' cargo.

"The opening of the new container terminal (T-2) at DP World Jebel Ali in August last year has contributed to a substantial increase in our handling capacity. The terminal is able to provide the regular, efficient services required by the new generation mega-sized vessels, and this is a competitive differentiator for our flagship terminal," he added.

Al Muallem said that the ambition to expand and determination to provide quality services that drive DP World"s UAE region are an integral part of Dubai's overall vision.

DP World - UAE was recently awarded a 'Recognised for Excellence' 5-star rating by EFQM, the European Foundation for Quality Management, a prominent international body that assesses the performance of companies and their commitment to quality standards. (WAM)

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DP World UAE awarded 'Recognized for Excellence' 5 star rating by EFQM

Reinforcing its reputation as a leading port operator, DP World has recently been awarded the 'Recognized for Excellence' 5 Star rating for Jebel Ali terminals by the European Foundation for Quality Management, becoming the first port operator worldwide and the first company in the Middle East to receive such prestigious recognition.

A team of four assessors from the European Foundation for Quality Management (EFQM), a non-profit membership foundation based in Belgium, recently visited DP World UAE and the Jebel Ali Port site. The assessors toured the site inspecting and evaluating port operations and management, and met members of management, supervisory, and staff across all departments.

Upon their final assessment report, they awarded Jebel Ali Terminals 5 Star distinction offered by the foundation.

"This five star certification reinforces the high operational standards of DP World UAE which have been built over the years, and reflects our strong commitment to the highest levels of quality in the services we provide. Our leadership, operations management efficiency, strategic planning and our strict adherence to the highest international quality standards has earned DP World UAE this international acclaim, distinction and recognition," stated Mohammed Al Muallem, Senior Vice President and Managing Director of DP World UAE.

The European Foundation for Quality Management recognition facilitates businesses to conduct performance assessment and measurement of achieved progress in areas such as strategic planning, leadership, corporate social responsibility, people, and many others.

The New 'Recognized for Excellence' Scheme, based on the 'EFQM Excellence Model' and which had been launched in June 2006, comprises 32 sub-criteria within 9 main criteria, which serve as the basis for a points-based assessment.

Mohammed Ali Ahmed, Director, Strategic Planning and Business Support, DP World UAE said: "This classification internally equips DP World with an efficient tool to evaluate the areas of strengths and weaknesses in management techniques, practices, and strategies adopted, and provides an incentive to implement best practices in the workplace. In today's competitive global economic landscape, it also offers our customers and partners a trusted quality, assurance, and control mechanism to efficiently evaluate corporate performance, growth and progress.' DP World UAE has received several local and international accolades in the past, such as Dubai Quality Award 2002, Dubai Government Excellence Award (Gold) 2005, and Middle East and India Award the (The Port of the Year) 2005 & 2006 awarded by Lloyd's List, amongst others awards. (WAM)

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DP World 2007 throughput increases 18 % in 07

Global marine terminal operator DP World announced on Monday it handled more than 43.3 million TEU (twenty-foot equivalent container units) across its portfolio of 42 terminals last year - an increase of 18% on 2006.

Growth across all three reporting regions continued strongly in 2007. The Middle East, Europe and Africa region grew 19% in 2007 compared with 2006, the DP World said in a press release issued today.

Terminals in the UAE increased throughput by 19% to 11m TEU, with the two Dubai ports of Jebel Ali and Port Rashid combined growing 20% to reach 10.7m TEU. DP World Jebel Ali alone grew more than 25%, reaching 9.9m TEU.

This was due new vessel calls as well as the opening of a new second terminal at the port in the second half of 2007, said the DP World which is running 43 terminals and 13 new developments across 27 countries. .

The release added the Asia Pacific and Indian sub-continent region recorded more than a 17% increase as many of the terminals expanded capacity and continued to improve productivity and efficiency to serve those markets? growth in containerised cargo.

The Americas and Australia region delivered growth of 18%, with all terminals in the region performing well.

DP Chief Executive Officer Mohammed Sharaf said: "2007 was another excellent year of growth for DP World, with our portfolio continuing to grow ahead of global container trade growth, estimated at 10.8%.
Our global footprint underwent further significant change in 2006 and our operational performance in 2007 reflects why we are now one of the leading terminal operators in the world. But we are not stopping here. Our customers continue to look to us to help them manage their supply chains, and we will continue to grow in accordance with their needs.
Our portfolio is well balanced and designed to meet the needs of our customers and of world trade today and tomorrow. During 2007 we announced four new wins - the agreement to develop two new terminals in Europe, Rotterdam and London Gateway; the concession to operate the existing port at Dakar, Senegal and to build the new port there; and the acquisition of Sokhna Port in Egypt.
In addition, we expanded the operations of our existing terminals, increasing capacity at selected facilities and improving efficiency to help our customers manage their supply chains even more effectively."(WAM)

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DP World shares up 10% in early trading

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

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DP World’s $5bn flotation marks Dubai bourse breakthrough

DP World has raised nearly $5 billion (£2.4 billion) in an initial public offering, making it the biggest Middle East share sale to date.
The Dubai port operator priced shares for its float at $1.30 each yesterday, valuing the state-owned shipping giant at $21.5 billion, according to company figures. The listing marks the most significant move yet by Dubai’s ruling Maktoum family to diversify the emirate’s economy away from dwindling oil resources towards tourism, trade and capital markets.
With the share sale already oversubscribed as much as 15 times, analysts said that the listing reflected increased investor confidence in the emerging Middle Eastern market.
Jason Goff, head of group treasury and markets sales for Emirates Bank International, said: “The extreme level of interest in this stock represents a real sea change and it shows how successful Dubai has been in marketing itself to the rest of the world.”
Mohammed Sharaf, chief executive of DP World, credited the float’s success in part to its decision to bypass the London Stock Exchange in favour of a listing on the Dubai International Financial Exchange (DIFX). The two-year-old bourse was set up to comply with international regulatory standards, but it has languished against competing exchanges in London and New York. The DP World listing is the first time that a leading domestic company has chosen to list exclusively on DIFX and marks a significant boost for the fledgling exchange.
DIFX, in which the Nasdaq exchange has agreed to take a 33 per cent stake, lists 11 companies, all of which also float shares elsewhere. “We chose this market because it created some added excitement to this listing. We wanted to share our success locally, with the rest of Dubai,” Mr Sharaf said. “There was a very strong demand for the shares from international investors.”
Dubai has ambitions to transform itself into a leading financial markets centre and DP World’s float marks a milestone in achieving that goal.
There is mounting speculation that Dubai’s ruling family plans to float a string of other state-owned companies, with Emirates Airline widely believed to be the next in line.
“We are paving the way. It is something others will be looking at,” Mr Sharaf said.
He said that proceeds from the DP World float 3.8 billion shares, equivalent to 23 per cent of the company would go to repay a loan that was raised last year to buy the British company P&O.
The funds will also be used to fuel an ambitious expansion plan, under which the shipping giant would more than double its capacity in the next decade.
DP World is the world’s fourth-largest ports operator, managing 42 ports, including Southampton and Tilbury in England, in 22 countries. The company plans to expand operations in the Far East, the Indian sub-continent and the Middle East, where ports are especially congested.
Per Larsson, chief executive of Bourse Dubai, the holding company behind the DIFX and DFM stock exchanges, has described DP World as an “anchor listing” that would encourage others to follow suit.
Soud Ba’alawy, executive chairman of Dubai Capital, the investment arm of Dubai Holding, which owns 20 per cent of Bourse Dubai, has said that there were more than 400 companies that could go public in the region with a market cap of between $5 billion and $20 billion. Source

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DP World raises IPO size to AED18b

The size of DP World's IPO, the region's largest initial public offering, has been increased from 20 per cent to 23 per cent due to strong demand from institutional and UAE retail investors.
The move by the global marine terminal operator will enable it to raise as much as Dh18 billion ($4.96 billion).

Sultan Ahmed bin Sulayem, Chairman of Dubai World, DP World's parent group, said the total number of shares being offered in the landmark issue, which opened on November 4, will be 3,245.3 million plus a greenshoe option of 572.7 million, amounting to 3,818 million shares.
The shares are being offered by DP World's sole shareholder, Dubai World subsidiary Port & Free Zone World (P&FZ World), at a indicative price range of $1.00 to $1.30.
"We have seen strong demand both internationally from institutional investors and in the UAE from retail investors for this unique investment opportunity. To help meet that demand we have decided to increase the offering," Bin Sulayem said.
Final pricing and allocation is expected to be announced on or about November 21. The selling shareholder reserves the right to allocate shares at its sole discretion. The shares are expected to be listed on the Dubai International Financial Exchange (DIFX) on November 26 .
The amount raised through the IPO which has been open to all GCC nationals and UAE residents with $6,000 required as the minimum application will be used to to repay a $3.5 billion bond.
The final price of the securities will be in US dollars and would be established through an international book building process. This will set a market price before listing.
DP World has achieved a strong financial performance in the first half of 2007. It posted an increase in throughput year on year of 23 per cent to 20.3 million TEUs. In 2006, DP World's volumes grew at about 18 per cent compared with broader market growth of about 11 per cent.
The port operator has also put into motion an expansion plan that would nearly double its capacity to almost 90 million TEUs in 10 year's time with its terminals connecting even more markets around the world.
DP World has 42 terminals in 22 countries, many of which are located in the Middle East, India and China, from where much of the company's future growth is expected to be concentrated.
Lead Managers of the issue included Deutsche Bank AG, Merrill Lynch International, Millennium Finance Corporation and SHUAA Capital PSC are acting as Joint Global Co-ordinators and Joint Lead Managers to the listing.
The receiving banks for the UAE retail offer are Mashreq Bank PSC, Emirates Bank, Abu Dhabi Commercial Bank and First Gulf Bank. Mashreq Bank PSC is the lead receiving bank. Source

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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)

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DP World listing boosts Dubai exchange

Dubai edged closer towards its goal of becoming a global financial hub yesterday, aiming to raise up to $4.32 billion (£2.07 billion) through a partial flotation of DP World, one of the world’s biggest ports companies.
The state-owned shipping giant, which bought the British company P&O last year, announced it would sell 2.822 billion shares in an initial public offering, priced between $1 and $1.30 each. The company retains the option of issuing an additional 498 million shares, representing a 20 per cent stake in total.
It is the first time a major domestic company has chosen to list on the DIFX, representing a major boost for Dubai's fledgeling global stock exchange. The listing is seen as a test for other state-owned companies that are considering a float to drum up capital, including Emirates, the airline owned by the royal family.
Mohammed Sharaf, chief executive of DP World, said: “We are the first jewel in Dubai's crown to go. This opens the way and it is something others will be looking at.”
Dubai-based tourist, real estate and shipping companies have been encouraged to seek local financing to fund ambitious expansion projects that will transform the tiny emirate into a capital markets hub.
Mr Sharaf said proceeds from the DP World float would be used to pay off a loan used to buy P&O. Valued at up to $21.6 billion, based on its IPO, the company plans to tap into the emerging markets of Latin America and Africa and double its capacity in the next ten years. DP World owns 42 ports in 22 countries.
Mr Sharaf said the new funds would fuel that expansion, ruling out a secondary listing on another stock exchange in the “foreseeable future”.
He said: “If we listed on other markets, we would be a small player. Here we are going to be getting 1,000 per cent attention.”
DP World's final offer price will be determined by a process of bookbuilding. The sale of existing shares will close on November 15 and the company will list on the DIFX on November 26, according to sources.
Per Larsson, chief executive of Bourse Dubai, the holding company behind the DIFX and DFM stock exchanges, described DP World as an “anchor listing” that would encourage others to follow suit. Soud Ba'alawy, executive chairman of Dubai Capital, the investment arm of Dubai Holding which owns 20 per cent of Bourse Dubai, said there were more than 400 companies that could go public in the region with a market cap of between $5 billion and $20 billion. Source

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IPO values DP World at $21.58 billion

Dubai port operator DP World has launched a share sale for retail investors in the UAE in an initial public offering that values the company at $21.58 billion.
The IPO is in the form of a 20 per cent sale of shares by DP World's sole shareholder Port & Free Zone World, a government-owned entity, which will retain majority ownership.
This makes DP World IPO the biggest such exercise in the Gulf, exceeding the Saudi Telecom share offering that raised $4.08 billion in 2003.
DP World set an indicative price for each share between $1 and $1.30.

It is offering 2.822 billion shares to individual and institutional investors with a greenshoe option of 498 million shares if there is further demand.
Retail and institutional investors will pay the same final price to be determined during a bidding process.
"Our pre-marketing has indicated that potential investors are interested in a medium to long-term investment in our shares," the company's vice chairman Jamal Majid Bin Thaniah said.
DP World, the world's number three port operator by container throughput, has 43 terminals in 23 countries. Source

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DP World IPO's UAE retail offer opens tomorrow

In connection with its previously-announced Initial Public Offering (IPO) of approximately 20 per cent of the company, global marine terminal operator DP World announced yesterday that applications for the UAE retail offer would open tomorrow, November 4.
Its summary document, including the application form, and full prospectus for UAE retail investors, will be available from selected branches of the receiving banks, Mashreq, Emirates Bank, Abu Dhabi Commercial Bank and First Gulf Bank.

The documents will include the indicative price range. UAE retail investors will apply based on the maximum amount of money that they wish to invest in the shares. The final price will be established through a bidding process with international institutional investors, which will set a market price before listing. Retail and institutional investors will pay the same final price, which is expected to be announced on or around November 21. Source

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Dubai Ports buys 90 pct of Egypt container firm

Dubai port operator DP World said on Wednesday it had acquired a 90 percent stake in Egyptian Container Handling Co for $670 million.
Located at Sokhna, near the mouth of the Suez Canal, the port is expected to have a capacity of 1.2 million 20-foot equivalent units by the end of 2009, DP World said in a statement.

The Dubai government plans to sell a 20 percent stake in DP World next month in what could be the Middle East's largest initial public offering. Source

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DP World plans a sale of shares

Dubai Ports World, which bought P&O last year, is planning to sell 20% of its shares in an offering next month.
The offering will begin on 4 November and shares will be listed on the Dubai International Financial Exchange.
DP World is the world's fourth largest container port operator and is controlled by the Dubai government.
No official details were given of the amount of money the sale will raise, although reports have put the figure at about $4bn (£2bn).

If that valuation is accurate it will surpass Saudi Telecom as the Middle East's largest initial public offering.
The sale will be open to institutional investors worldwide as well as nationals of the six Gulf Arab oil producing states and residents of the United Arab Emirates.
DP World bought P&O last year in a deal worth $6.9bn (£3.4bn) but later had to sell on its US ports following political opposition to the deal. Source

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DP World considers $2 bn IPO

DP World, the world's third-largest container port operator, may this year sell $2 billion of shares in an initial public offering and list the stock in Dubai, Middle East Economic Digest reported.
The Dubai government-owned company may list the shares on the Dubai International Financial Exchange, unidentified analysts close to the port operator said, according to the London-based weekly magazine.

DP World, which bought Britain-based P&0 port and ship operator for $6.85 billion in 2006, last year hired Deutsche Bank and Merrill Lynch to advise on a possible IPO, MEED said.

A DP World spokeswoman said the company had several financing options available to it, including an IPO or bond sale. "No decision has been made yet," she told Reuters on Sunday.

In April, DP World asked Deutsche Bank and Dubai-based investment bank Shuaa Capital to review its financing options, including a possible stock market listing or a refinancing, MEED said.

In January last year DP World's parent, the Ports Customs and Free Zone Corp (PCFC) sold $3.5 billion of two-year Islamic bonds, which investors can convert into shares in any IPO by one of its subsidiaries.

A DP World listing "is not an option now", Dubai World Chairman Sultan Ahmed bin Sulayem told Reuters last month. Dubai World is the government body that owns PCFC, property developer Nakheel and investment agency Istithmar.
Source

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DPWorld downplays ports screening impact

Ports operator DP World said on Monday it foresaw little impact on its own trade after the US Congress passed a bill requiring countries to screen every US-bound cargo container within the next five years. DP World, owned by the Dubai government and the world’s third-largest container port operator, said that any issues arising from the legislation in the US will be resolved by negotiating governments before they are implemented.“We see little impact as the measure has a five year time horizon and the ability to extend the timing if necessary,” a DP World spokesperson commented.

“We welcome initiatives that improve security but it’s important that they don’t negatively impact the supply chain in terms of time and therefore costs,” the spokesperson added.The US Congress passed the bill last week requiring radiation screening within five years of 100% of US-bound maritime cargo before loading at foreign ports, but it allows the secretary of Homeland Security to extend the deadline two years at a time.It been criticised by many in the shipping industry worldwide as well as in the EU, the biggest trading partner with the US. European customs commissioner Laszlo Kovacs said on Thursday the move would disrupt trade without diminishing the terrorist threat. Shipping and trade woes Shipping industry experts also fear that poor countries may lose exports to the US and a disorder may also follow in world shipping if other countries start imitating US-style port security measures.Since the September 2001 terror attacks in New York and Washington, Americans fear they could become a target of a nuclear or chemical weapon that terrorists might smuggle into the US in a container.Washington has already deployed its Customs agents at several key foreign ports to selectively examine high-risk containers before they are loaded onto ships sailing for the US. It has roped in several strategically-located ports across the world into the US 'Container Security Initiative’ (CSI). The initiative launched in 2002 has been adopted by major container terminal operators like DP World, APM Terminals, PSA and Hutchison Whampoa.DP World’s participation in CSI has been successful, said the DP World spokesperson. Fourteen out of 42 of its terminals worldwide are part of the programme, the most of any terminal operator.The US Customs inspectors are armed with radiation monitors, chemical detectors and other equipment to check for dangerous cargo. But this measure is not seen as an obstacle to trade because it focuses only on suspicious containers without calling for every box to be screened.As part of CSI, DP World also said that it was co-operating with the United States on the Secure Freight Initiative, aimed at keeping radioactive weapons out of US-bound cargo, at one of the pilot location in the UK.“Security is important to ensuring the smooth flow of global commerce and we are looking to expand our participation in the programme to other countries in due course,” said the spokesperson.“Our learning from the pilot programme will undoubtedly have an influence on the final scanning requirements.”DP World touched off a political firestorm in the US last year when its acquisition of British rival P&O gave it control of facilities at six US ports.With Congress threatening to block the deal over national security concerns, DP World agreed to relinquish control of its US assets. In March, it announced it had sold them to a unit of American International Group. In June, US investors bought about half the $1.75 billion worth of 30-year bonds issued by DP World. Source

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DP World to establish marine academy

DP World-UAE announced today that it will establish a marine academy as part of its proactive strategy to keeping pace with developments in the global sea shipping industry and grooming future management talent leaders. This was announced by Sultan Ahmed Bin Sulayem, Chairman of Dubai World and DP World, during a visit today to Jebel Ali Port on the occasion of the completion of construction work in the first phase of stage 1 of its Mega Max container terminal and the start of work on the rest of the project.Sulayem said:''Jebel Ali Port is pivotal to the operations of DP World and our long-term expansion plans reflect this adequately. We also consider it as a very important base for grooming our future management talent. ''It is with this strategic goal in mind that we are pleased to announce our decision to establish a Marine Academy under the supervision of specialists in all fields of the industry, so as to keep pace with the giant expansions we are undertaking in different parts of the world. ''We are determined to close the gap between supply and demand in our human assets requirement. The management graduates of this Academy will be crucial to our operations in DP Worlds 42 terminals spread across 22 countries,'' he added.The new terminal has a quay of 1,200 meters long, with a handling capacity of 2.5 million TEUs. The work also involved deepening of the channel up to 17 meters, enabling Jebel Ali Port to receive mega-size new generation vessels The ships will start to call at the new terminal from the first week of August.The terminal is part of DP World?s ambitious plan to develop a mega container terminal that will eventually have a 40-kilometer quay and a port area spread over 2,300 hectares. The development of this super project will be carried out in 15 stages between now and 2030. Source

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