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June 1 (Bloomberg) -- DP World Ltd. shares in London were trading at a premium of 1.7 percent to today’s closing price on Nasdaq Dubai as the Dubai World-controlled company’s stock debuted on the London Stock Exchange.
The shares were at 840 pence ($13.80) at 12:04 p.m. in the British capital after gaining to as high as 880 pence. The stock rose 0.9 percent to $13.57 on Nasdaq Dubai, reversing a decline of as much as 1.9 percent.
“The aim is to provide an additional platform to invest in DP World shares to help attract a broader range of investors,” it said today. DP World, which operates ports from Europe to Asia, cross-listed 830 million ordinary shares to attract investors after low trading volumes in its home market.
“Liquidity will improve and so will visibility, both factors will aid in better pricing” after the London listing, said Hassan El Salah, head of institutional equities at Al Ramz Securities LLC.
DP World said last year it would seek a listing in London to improve investors’ perception of its value after the shares slumped 68 percent in 2008. The Nasdaq Dubai listed stock gained 47 percent last year and 10 percent in 2009.
The company raised $4.96 billion in the Middle East’s biggest initial public offering in November 2007, selling 3.818 billion shares, or 23 percent of its equity, at $1.30 each. The company last month received approval to consolidate its stock, with shareholders receiving one $2 share for every 20 existing shares of 10 cents each after the consolidation.
Dubai World, the state-owned holding company that controls DP World and that sought to alter the terms on about $25 billion of debt, signed a final deal with creditors in March, marking the end of a restructuring that roiled global markets in 2009.
--Editors: Susan Lerner, Claudia Maedler
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