Dubai ports firm holds off on London stock listing

By ADAM SCHRECK

DUBAI, United Arab Emirates

The global port operator controlled by Dubai World on Monday delayed a months-old plan to list its shares on the London Stock Exchange because of the pending merger of the Gulf city's own stock markets.

DP World, the world's fourth largest ocean cargo handler, said in a regulatory filing it remains committed to pursuing the London plan, but is waiting until "an acceptable system" is in place to support a secondary listing.

The stock is already listed on the Nasdaq Dubai, one of two stock exchanges in the Middle East financial hub. Shares fell 4.8 percent to close at 46 cents apiece Monday.

DP World executives have expressed disappointment with the stock's performance on the Dubai exchange, which has struggled to attract significant interest from investors. It is in the process of merging with the city's other bourse, the Dubai Financial Market.

DP World announced plans to seek a London listing in January. Listing shares there would increase the company's visibility among international investors and potentially create additional liquidity, making the shares easier to trade.

It has not said whether it would issue additional stock -- a move that would directly pump new funds into the company.

A DP World spokeswoman said the port operator chose to hold off on the London listing until the two Dubai markets are able to link up and test their joint trading platform. That will give DP World time to ensure the trading platform is secure and syncs with the one in London, she said.

DP World does not expect to pursue a London listing until sometime next spring, the spokeswoman said. She spoke on condition of anonymity in line with company policy.

"It just seemed to us to be sensible to delay until spring," she said. "We'll have fully audited results by that stage for 2010."

DP World typically releases its full-year results in late March.

It previously said it would seek a London listing by the end of the second quarter this year.

DP World's shares have lost 65 percent of their value from their initial price of $1.30 each in late 2007.

Mohammed Yasin, chief executive of Abu Dhabi-based brokerage Shuaa Securities, said regional investors are looking forward to the merger of the Dubai exchanges, which could make DP World shares easier to trade, but he questioned whether it makes sense to pursue a secondary listing in London now.

"Is it going to attract new investors? I'm not sure," he said. "I'm sure the market conditions here didn't help."

The company now ranks as one of the world's biggest seaport operators, with 49 cargo terminals on six continents. It runs Dubai's Jebel Ali, the Middle East's biggest port, and is developing a new deep-sea container port outside London.

The port firm has avoided the U.S. market since its 2006 plan to assume control of American cargo terminals sparked a political firestorm, but its operations elsewhere -- particularly in the developing world -- have proved profitable despite the global slump in trade.

The company is majority owned by the deeply indebted state conglomerate Dubai World. It is not part of Dubai World's unresolved $23.5 billion restructuring plan.