DP World: A Port for Every Investment Storm?

While this has been somewhat on-again, off-again over past months, the New York Times recently reported that DP World, the Dubai government port owner with holdings from Britain to China, plans to raise as much as $3.5 billion in the Middle East’s second-biggest initial share offering.  While I am as yet undecided about the long-term investment opportunity such an IPO may represent, I do agree with the analysis that this may be part of Sheikh Mohammed’s efforts to boost overseas investor confidence and enhance Dubai’s presence in the international capital markets.

“…DP World may sell up to 30 percent of its stock as early as next month to fund expansion and honor convertible bonds sold in 2006, according to Bloomberg. The shares would reportedly be listed on the Dubai International Financial Exchange, which will be renamed as a Nasdaq Stock Market venture after the Nasdaq agreed to buy a 33 percent stake last month.

“This would be the long-awaited opportunity for investors to own equity in one of Dubai’s crown jewels,” Chavan Bhogaita, head of credit research for HSBC Holdings in Dubai, told Bloomberg. “It’s not just about the convertible bonds, but possibly a move by Sheikh Mohammed to boost overseas investor confidence and enhance Dubai’s presence in the international capital markets.”

This entry was posted on Saturday, October 13th, 2007 at 5:13 am and is filed under Dubai World, UAE.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.