DP World looks to revive flotation

Container port operator DP World is said to be again preparing to launch a US$2 billion initial public offering before the end of this year, reports The Khaleej Times of Dubai.

This comes with speculation that the Middle East company has scrapped IPO plans and was instead trying to raise cash to finance its global expansion by issuing bonds, the newspaper reported.

The paper cited the London-based Middle East Economic Digest (MEED) which said that DP World was considering selling $2 billion worth of shares this year in a flotation to be listed on Dubai Financial Market despite earlier saying it would not go public.

In response to the MEED report, DP World spokeswoman Sarah Lockie told The Khaleej Times that there was nothing new. "No decision has been made. Options are the same as before."

The reported IPO would follow hot on the heels of the Dubai-based company's successful $3.5 billion convertible Islamic sukuk bond, which it issued recently in part to help finance expansion goals. Analysts maintain many investors bought bonds on the back of expectations that an IPO would follow later this year.

MEED claimed that DP World last year hired Deutsche Bank and Merrill Lynch to advise on a possible IPO. However, the magazine report was released shortly after Ahmed bin Sulayem, the chairman of DP World's parent company Dubai World, recently denied the company was pursuing an IPO.

He did, however, admit that DP World has been holding talks to acquire Chinese port assets. The company operates 42 terminals in 22 countries, ranking behind PSA International and Hutchison Port Holdings as the world's third largest terminal operator.

Back in 2005, DP World announced plans for a flotation on the London Stock Exchange last year, but postponed it due to market conditions, the report added.