Thu, Nov 22, 2007 - Page 12 News List

DP World raises US$4.96 billion in IPO


Dubai port operator DP World raised a total of US$4.96 billion in its initial public offering (IPO), the largest ever in the Middle East, it said.

The world's fourth-largest container port operator said the IPO priced its shares at US$1.30 -- the top of an indicative price range of US$1 to US$1.30 per share given at the launch on Nov. 4.

DP World had offered 17 percent of its 16.6 billion shares, with the possibility of expanding the offer to 20 percent.

But the amount was increased due to strong demand to up to 23 percent, or 3.82 billion shares, including an additional over-allotment option of 572.7 million shares.

With the over-allotment option, the proceeds of the IPO amount to US$4.96 billion, surpassing a 2003 IPO by Saudi Telecom which raised more than US$4 billion.

The pricing implies that the market capitalization of DP World is US$21.6 billion, the company said in a statement.

DP World, which is controlled by the government of the United Arab Emirate of Dubai, became a top global port operator when it acquired Britain's P&O in a US$6.9 billion deal last year.

But the company had to relinquish the US part of that acquisition following fierce congressional opposition to the deal on security grounds despite having the support of President George W. Bush.

The company now owns 42 terminals across 22 countries.

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