P&O owner seeks LSE listing as Dubai shares struggle

The company, which owns Hull ferry operator P&O, could list on the LSE as soon as the second quarter of this year, it said in a statement on the bourse website.

Its shares currently trade on the Nasdaq Dubai market.

"After an extensive period of review with advisers, and discussions with shareholders, the board of DP World has decided to seek a premium listing on the London Stock Exchange whilst maintaining the existing primary listing on Nasdaq Dubai," it said.

"In March 2009 the board ... stated it would evaluate all available options to address its continued disappointment with the markets valuation of the company."

Since listing on Nasdaq Dubai – formerly the Dubai International Finance Exchange – in November 2007, DP World's shares have struggled.

The stock was up 2.6 per cent at $0.435 on Wednesday, down about 67 per cent on its IPO price of $1.30.

DP World is one of the largest port operators in the world and is owned by Dubai government-linked conglomerate Dubai World, but is not included in its parent company's $26bn debt restructuring plans.

"Previously DP World's management had said it was not happy with the valuation the market was putting on the company and was looking at ways to unlock value for shareholders," said Rami Sidani, head of investment at Schroders Middle East. "One of the concerns would have been the lack of liquidity on the Nasdaq Dubai, so a dual listing is a good idea.

"The company will be more visible to international investors," he said.

DP World is the only share on Nasdaq Dubai that trades on a daily basis.

Last October it reported a six per cent fall in third-quarter container volumes and said its 2009 results would be in line with market expectations despite a challenging fourth quarter.

On January 4, DP World said it had paid regular profit and coupon obligations on a $1.5bn Islamic bond and another $1.75bn issue

on time.