Who can subscribe? The convertible bond issuers will of course have priority but what availability is there for the general public?
Is subscription restricted for foreigners?
What is the IPO price going to be?
How do you go about subscribing?
When will DP World shares list?
If I find out more information then I'll add it here. Remember though, if you have an investor card and account with the Dubai Financial Market (DFM), that won't be of any use for the DP World IPO since the DIFX is a different entity.
Good news for the DIFX, I can't imagine DP World shares sitting there without being traded on a regular basis.
Reuters 21 October 2007 wrote:
DP World in landmark IPO
Dubai will sell around 20% of state-owned port operator DP World in an initial public offering (IPO) next month, the company's parent said on Sunday.
DP World, which was the world's fourth-largest container terminal handler in 2006, will list shares on the Dubai International Financial Exchange (DIFX) on November 26 after an international book-building process, Dubai World said.
The IPO, which could be the Middle East's largest, will open on November 4 when DP World will give investors an indicative price range for the shares, Dubai World said in a statement. The IPO will close on November 15, it said.
The IPO will value the company at as much as $20 billion, a source familiar with the matter told Reuters on Sunday.
The offering of existing shares will be open globally to institutional investors, nationals of the six Gulf Arab oil producers and residents of the UAE.
"Today marks another step in the development of DP World from a local, to a regional, to a global player," Dubai World Chairman Sultan Bin Sulayem said in the statement.
A person familiar with the plan told Reuters on September 11 that DP World was planning to sell about 20% of its shares to raise as much as $4.2 billion before the end of the year.
That would surpass the $2.72 billion Saudi Telecom raised in its public share sale in 2003 as the Middle East's largest IPO. Saudi Telecom also sold some shares to government funds taking the total raised to $4.08 billion.
Information from the DIFX market is vital to help you determine whether to buy or sell. The faster the market moves the more important it is to have accurate up-to-the-minute information at your fingertips. The DIFX makes its market data widely available.
<snip>
... Company and regulatory news announcements will be available at the time of release to the market.
... but no news about the DP World IPO that I can see
Latest press release on DIFX website is dated 13 August 2007
Latest press release on DP World website is dated 08 October 2007
Nothing seen on Shuaa Capital website. They and DIB, and a couple of other banks are involved in running the IPO.
Which by the way probably explains the sharp rise in share price for Shuaa (SHUAA) today, and Dubai Islamic Bank (DIB) last week. _________________ UAE IPO list | posting guidelines
Here's the press release about the Dubai Ports World IPO, which seems to say less than the Reuters report. No answers to the questions above ...
Press Release 21 October 2007 wrote:
DP World to sell 20% shares in ME's largest IPO
Dubai International Financial Exchange (DIFX) today announced that global marine terminal operator, DP World, has applied for its shares to be admitted to the official list of securities of the DIFX, and to list its shares on the DIFX.
Per E. Larsson, Chief Executive Officer of Borse Dubai and of the DIFX said: 'Today's application to list from the world's fourth largest marine terminal operator, DP World, underlines the stature of the DIFX as both a regional and international hub for investors. It also provides further support for our strategy of international expansion.
'Our world class trading platform will help DP World access the regional investment base, estimated to have $US3 trillion in available liquidity*, and the local retail investor base, as well as the international capital markets.
'It also reflects the excellent international, independent legal and regulatory platform which has been established in the form of the Dubai International Financial Centre (DIFC) and Dubai Financial Services Authority (DFSA).
'We fully expect a number of local and regional companies to apply for listings on the DIFX and Dubai Financial Market (DFM). This will further fuel the growth of Borse Dubai and continue to bolster its significant attractions as a route to local and international capital markets.'
Hamed Ali, Executive Officer, DIFX said: 'This IPO would represent a significant milestone for the DIFX and for Dubai as a financial centre, giving issuers unparalleled access to global and regional liquidity pools.
'Over the past year we have successfully replicated other international exchanges and in one particular area listings of Sukuk (Islamic bonds) by value we are established as the world's leading exchange.
'We have also launched Dubai International Financial Exchange TraX, the first structured products platform on an exchange in the region, and we will continue to launch new markets and introduce new and innovative products.
'We have successfully built a very healthy environment for trading, including a world class trading platform and close links with regional and international brokers. These include 19 Members - 14 international and 5 regional - contractual agreements with market makers, and connections with the international central securities depositaries Clearstream and Euroclear.'
[edit] Fixed AED 1.8 billion error in calculation. That no one spotted sooner ? [/edit]
Bloomberg has a write-up of the Dubai Ports World IPO today. Value has dropped from earlier reports of it being worth $4 billion (AED 14.7 billion). Some questions appear to be answered.
IPO open to all UAE residents, GCC nationals, and international institutions. So if you're a foreigner without a UAE resident's visa, you could be out of luck.
What are DP World shares worth?
Revenue for 2006 was AED 7.7 billion
Revenue for 2007 could be AED 8.8 billion (was AED 4.4 billion for 2007 H1)
But what is the profit margin for DP World? 20-40%? You'd hope it was at least 20%, more than 40% would be a bonus. That would mean somewhere between AED 1.8-3.6 billion profit for 2007. Does anyone know what sort of profit margins are typical in the port operations industry?
If DP World want to raise AED 12.85 billion dhs ($3.5 billion) by selling 20% of the company in the IPO, and they sell shares for AED 1 each (I don't expect they will) then that means there would be 64 bn shares total (rather a lot ).
Based on profit estimates above we'd have an EPS estimate for 2007 of 0.028-0.056. If shares were traded at average market PE of about 15, that would see them worth about 0.42-0.84 dhs per share.
At a PE of 30, which some companies in the UAE have, we get a more promising 0.84-1.68 dhs per share. To justify a PE of 30 though, we'd like to see some decent profit growth.
DP World aims to increase container capacity from 49 million to 90 million containers in the next 10 years to 2017. If we use that as an indicator of profit and revenue growth, that's about 7% per annum. Not unreasonable but not very high either, and you wouldn't expect shares to trade at a PE of 30 with that growth rate.
There's no net asset figures given so we can't make an estimation of Price to Book Value (P/BV).
We'll have to wait for more information to make better estimates. Or find an error in my thinking . I note the revenue figures exclude revenue from joint ventures and associates. That could make a big difference.
Bloomberg 21 October 2007 wrote:
DP World Plans $3.5 Billion IPO, May Spur Dubai Sales
By Will McSheehy and Massoud A. Derhally
DP World Ltd., the Dubai-owned ports company with terminals from the U.K. to China, plans to raise at least $3.5 billion in an initial share offering as the emirate turns to asset sales to attract international investors.
DP World will sell about 20 percent of its equity next month, Chairman Sultan bin Sulayem told reporters in Dubai today. The sale would repay a $3.5 billion bond and provide cash to the government, he said, without being more specific. The IPO, the biggest in the Middle East to be open to all investors, will support the emirate's ambition to become a global financial center, Sulayem said.
The sale will achieve "Dubai's objectives of getting investors involved in one of its main drivers of growth, and putting the emirate firmly on the international capital-markets map," said Chavan Bhogaita, head of credit research at HSBC Holdings Plc in Dubai.
DP World's IPO follows Dubai's purchase of stakes in Nasdaq Stock Market Inc. and London Stock Exchange Group Ltd. as the emirate vies with Qatar and Bahrain to be the region's dominant financial center. A successful sale might be copied by government-controlled companies including Nakheel PJSC, the developer of the world's biggest man-made islands.
The offering "will be good for Dubai," Sulayem said. "It could encourage many family companies" to sell stock.
Boost for Exchange
DP World's shares will be listed on the Dubai International Financial Exchange (DIFX), which is to be renamed as a Nasdaq venture following the September deal with the U.S. company. Dubai is using cash from the Gulf's oil-fueled economic boom to establish a financial center that would plug a trading gap between London and Singapore. The emirate owns stakes in banks including HSBC, Deutsche Bank AG and Standard Chartered Plc.
DP World had 2006 revenue of $2.1 billion, excluding joint ventures and associates, according to a company statement in Dubai today. Sales for the six months ended June 30 were $1.2 billion, it said. DP declined to disclose earnings.
The stock will be offered to United Arab Emirates residents and Gulf Arab nationals and corporations, and to institutional investors elsewhere, the company said in a statement. U.A.E. applications will close Nov. 15 and pricing will be Nov. 21, when the offer closes for institutions, DP said.
'More to Come'
Dubai started the DIFX in 2005 to become the Gulf's first exchange open to investors and issuers of any nationality. DP World, "gives the DIFX our first anchor listing, and there will be many more to come," Per E. Larsson, chief executive officer of the exchange, said today.
Nakheel, the developer, may sell shares before 2009 to fund projects and honor the $3.52 billion convertible Islamic bond it sold in November, Chief Executive Officer Chris O'Donnell said in an Oct. 10 interview.
"The DP World IPO makes sense," said Joe Kawkabani, managing partner of Algebra Capital Ltd., in a telephone interview from London. "It's the first of many."
DP World, through the state-run Ports, Customs & Free Zones Corp., sold convertible Islamic bonds in January 2006 that mature in January 2008. The bonds yield 7.125 percent to maturity if there is an initial public offering. The yield is 10.125 percent to maturity if there is no share sale, Bloomberg data show.
The Dubai company last year acquired Peninsular & Oriental Steam Navigation Co. of the U.K. for $6.8 billion to become the third-biggest container-port operator. DP World plans to spend about $3.5 billion on new projects over the next five years, Chief Executive Officer Mohammed Sharaf said in a June interview.
42 Terminals
With 42 container terminals in 22 countries, DP said it aims to increase capacity to the equivalent of 90 million 20- foot containers a year by 2017, from 48.6 million at the end of 2006. The company is trying to catch up with Hutchison Port Holdings Ltd. and Singapore's PSA International Pte.
Sulayem said today that the company is unlikely to keep making acquisitions. "We have done all our major acquisitions and investments," he said. "What you will see is expansion of the existing facilities."
DP World was forced to sell assets acquired from P&O by U.S. lawmakers, who cited security concerns. In May, DP said it won U.K. government approval to spend $3 billion developing a deep- water port near London, and in July, bin Sulayem said the company will buy or expand port facilities in China and India.
Investment Corp. of Dubai, the manager of government companies including Emirates airline and Dubai Aluminium Co., yesterday said it had named Saad Abdul Razak to head its strategy for asset sales and special projects. The corporation has assets with a combined market value of more than 300 billion dirhams ($82 billion), it said in an e-mailed statement.
Deutsche Bank, Merrill Lynch & Co., Shuaa Capital PSC (SHUAA) and Dubai Islamic Bank PJSC's Millennium Finance Corp. unit are advising DP World on its IPO.
In 2003, Saudi Telecom Co. raised $4.1 billion in the Middle East's biggest initial offering. That sale was open only to Saudi investors.
But what is the profit margin for DP World? 20-40%? You'd hope it was at least 20%, more than 40% would be a bonus. That would mean somewhere between AED 1.8-3.6 billion profit for 2007.
The FT has managed to come up with a few more numbers in their report. Looks like 20% profit margin will be closer to the mark after taking off taxes, interest, etc. Although we don't have any further information on contribution from associates.
There's not much more we can do with these numbers since they're not Net Profit figures. But unless there's a hefty contribution from subsidiaries and associates, the DP World share price is starting to look like it will be fair at best and possibly on the high side.
Financial Times 21 October 2007 wrote:
DP World to silence critics with Dubai IPO
By Robert Wright in London
The stock market listing of DP World, Dubai’s state-owned container port operator, will provide a riposte to critics of the lack of transparency in the Gulf emirate’s many government-owned companies, DP World’s chief executive said on Sunday.
Mohammed Sharaf was speaking after the company confirmed plans to list 20 per cent of the company’s shares – currently held entirely by government-owned Port & Free Zone World – on the Dubai International Financial Exchange by the end of November.
The Dubai listing is to be the only one for the shares, in spite of earlier speculation the company might seek a secondary quotation on the London Stock Exchange, where P&O, the port and ferry operator it bought in 2006, used to be listed.
The move to a public listing will represent a major opening-up to scrutiny of the finances of DP World, the world’s number four container port operator, which has never before published financial figures.
The first figures, published on Sunday, showed it made earnings before interest, tax, depreciation and amortisation of $705m on turnover of $2.08bn during 2006, and $454m ebitda on sales of $1.21bn in the first half this year.
Mr Sharaf said Dubai’s government-owned entities had been criticised for their lack of transparency, which had led to accusations the companies were operating with subsidies from Dubai’s authorities.
“This will be a chance for the world, to show them that we are running as an international, global organisation, without any financial support from the government,” he said.
Among the other companies to have faced criticism from competitors over transparency is Emirates, Dubai’s fast-growing government-owned airline.
Mr Sharaf said that all of the shares to be listed would be sold by Port & Free Zone World and that it would retain the proceeds, rather than reinvesting them in DP World.
On the London listing, Mr Sharaf said that although the company had announced it intended to list in London, after two years of considering its options it had decided that, since it was a Dubai-based company, it was best to stick with a Dubai-only listing on the relatively new DIFX.
“You may say it’s an untested platform – well, Dubai is known for that,” Mr Sharaf said.
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