DP World shares climb 5 percent

DP World shares climb 5 percent

Shares in the ports company, part of the troubled Dubai World, rise following news that it may offer new shares on the London exchange.

March 7, 2010 6:49 by kippreport

DP World shares rose by 4.94 percent on Sunday, on the back of reports that the ports and logistics company may offer new shares on the London stock exchange.

The company, which is part of the troubled Dubai World conglomerate, is considering offering 5 percent of its shares in a rights issue, while its parent company could offer a 10 percent stake to the public, in a move which could raise $1 billion, according to The National newspaper.

The port operator, which has a market capitalization of about $6.7 billion, is aiming to become part of the FTSE 100 share index in a bid to boost liquidity and raise the stock’s free float shares to 35 percent, according to the report.

Shares in DP World, which trade on the NASDAQ Dubai market, rose by as much as 6.2 percent today, before closing 4.94 percent up at the end of trading.

Dubai World rocked global markets last November when it asked for a delay on paying $26 billion in debt linked to its main property units.