DP World postpones listing

City A.M. Reporter
PORTS operator DP World has postponed plans to seek a dual listing on the London Stock Exchange saying it needed to find an acceptable system to support the listing.

The next opportunity would be starting after the publication of its 2010 results, the unit of conglomerate Dubai World said in a statement.

The company usually publishes annual results in March.

DP World had originally sought the listing to attract investors from outside the Middle East as its home bourse, Nasdaq Dubai, failed to attract ample liquidity.

It said in January could list on the LSE as soon as the second quarter of this year.

"We are taking a cautious approach and want to make sure that shares are fully fungible between London and Dubai," a spokeswoman said.

In April, DP World approved an amendment allowing the firm to seek a listing on the LSE.

"The (dual listing) did not make much sense to most of the investment community here," said Mohammed Yasin, Shuaa Securities chief executive, adding the company's investor base in Gulf Arab region, not London.

He said the firm's shares are unlikely to see much reaction to the postponement.

The firm, which is not included in Dubai World's restructuring plan, is one of the largest port operators in the world and is 77 per cent owned by the state-linked conglomerate.

The ports operator has been seeking a London listing via sterling depositary interests.

In March, DP World's Chief Executive Mohammed Sharaf said the LSE listing is not to raise additional capital but to provide additional liquidity.