There's another press release today which repeats most of the previous news articles today but there's a few useful pieces of information.
DP World IPO prospectus should be available from 04 November 2007.
DP World shares expected to list by end of November.
UAE residents and GCC nationals can apply for shares.
Shares will be priced in US dollars, and will be determined through a book building process.
Press Release 21 october 2007 wrote:
Dubai World announces DP World IPO
Dubai World today announces it intends to undertake an initial public offering (IPO) of approximately 20 percent of its global marine terminal operator DP World.
The IPO will be in the form of a sale of shares by DP World's sole shareholder, Port & Free Zone World (P&FZ World), which will retain majority ownership. The shares will be listed on the Dubai International Financial Exchange (DIFX) and listing is expected at the end of November.
The shares will be offered globally to institutional investors, and in the UAE the offer includes UAE residents and GCC nationals and corporates with qualifying investment accounts in the UAE. The UAE retail offer applications must be made in the UAE. (1)
Application forms for the UAE retail offer will be included with a summary document, which, together with the full prospectus, are expected to be available in the UAE from 4 November. UAE retail investor applications are expected to begin from that day and close on 15 November.
The price of the securities will be in US dollars and will be established through an international book building process. This will set a market price before listing.
Chairman of Dubai World and of DP World, Sultan Ahmed Bin Sulayem, said, 'This is an exciting day for us. DP World is one of the jewels in the crown of Dubai World and we are delighted it will be the first home-grown Dubai company to be listed on the DIFX.
'Today marks another step in the development of DP World from a local to a regional to a global player. But importantly, it also signals the clear intent by Dubai World and Dubai itself to be active participants in the international financial markets, with all the opportunities and responsibilities this brings.'
Mr Bin Sulayem emphasised the commitment to the retail offering in the UAE.
'Although DP World is global, it is a Dubai-based company with strong roots here. It has supported and continues to support the growth of Dubai and the UAE. Those who live and work here are justifiably proud of DP World's international reputation as a leading provider of marine terminal services. We are very keen that they participate in DP World's future.'
Mr Bin Sulayem said,' We have great confidence in DP World's Board and management team who have led the company so capably to its current success. We believe the time is right for us to welcome a broader base of international shareholders to participate in DP World's future.'
DP World Executive Vice Chairman and Group CEO of P&FZ World, Jamal Majid Bin Thaniah said, 'DP World is well prepared for a global IPO, having reorganised to become a pure play port operator over the past year.
'DP World's Board has also been further strengthened with the appointment of respected international business leaders Sir John Parker, David Williams and Davy Ho as independent, non-executive directors, with Sir John playing an important role as Vice Chairman. These Board members bring valuable international business expertise to the company as well as broad experience as directors of publicly listed companies.
Mr Bin Thaniah concluded, 'DP World is one of the leading marine terminal operators in the world. It has achieved a strong financial performance and in the first half of 2007, we saw an increase in throughput year on year of 23 percent to 20.3 million TEUs (2), and Proforma Adjusted EBITDA of US$453.7 million (3).
'DP World is a dynamic business with a strong track record and is well positioned to continue this growth into the future.'
DP World CEO Mohammed Sharaf said, 'We have transformed our business over the past three years with the constant support of our shareholder, our customers and our employees. As we move forward, we intend to expand even further by building on our current extensive network. We have projects in hand today that we expect to nearly double last year's capacity, to reach almost 90 million TEUs in ten year's time, with our terminals connecting even more markets around the world. We believe we have a compelling story and we look forward with great enthusiasm to the future, creating value for our current and future shareholders.'
Notes about the DP World Initial Public Offering (IPO)
Those eligible to participate in the UAE retail offer are (a) UAE and other Gulf Co-operation Council (GCC) nationals who are resident in the UAE or another GCC country, (b) other UAE residents with a valid residency visa and (c) corporate entities organised under the laws of the UAE or another GCC country, who, in each case, hold a securities account with one of the assigned brokers and apply for Shares according to the UAE Retail Offer in the UAE. GCC countries are Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates.
Twenty-foot equivalent units of containers
Proforma Adjusted EBITDA is defined as the sum of profit after tax from continuing operations, plus finance costs (net of finance income), income tax, depreciation and amortisation, further adjusted to remove the impact of separately disclosable items.
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.
Overview
DP World is the fourth largest marine terminal operator in the world by capacity and throughput. The Company is also one of the most geographically diversified container terminal operators. Its 42 container terminals, which span 22 countries, had, in their ongoing business, a gross capacity of 48.6 million twenty-foot equivalent units (''TEUs'') as of December 31, 2006. The Company generated gross throughput of 36.8 million TEUs and 20.3 million TEUs for the year ended December 31, 2006 and the six months ended June 30, 2007, respectively.
DP World is a pure play marine terminal operator in the ports business focusing its management and resources on the operation and development of ports around the world under long-term concession arrangements.
Financials
For the year ended December 31, 2006 and the six months ended June 30, 2007, DP World generated Proforma Revenue from operations (not including revenue attributable to its joint ventures and associates) of $2,076.0 million and $1,209.0 million respectively, and Proforma Adjusted EBITDA of $705.3 million and $453.7 million, respectively.
Lead Managers
Deutsche Bank AG, Merrill Lynch International, Millennium Finance Corporation and SHUAA Capital PSC (SHUAA) are acting as Joint Global Co-ordinators and Joint Lead Managers to the listing. The receiving banks for the UAE retail offer are Mashreq Bank PSC (MASQ), Emirates Bank (EBI), Abu Dhabi Commercial Bank (ADCB) and First Gulf Bank (FGB). Mashreq Bank PSC is the lead receiving bank.
Sukuk Information
For holders of the PCFC Development Sukuk, the IPO of DP World will be a Qualifying Public Offering ('QPO') and, accordingly, a portion of the sukuk will be redeemed pursuant to its terms following the IPO. Further details of this will be available from 4 November.
Not for distribution, directly or indirectly, in or into the United States, Canada, Australia, Japan or any GCC country other than the UAE.
Enquiries
DP World
Sarah Lockie, Head of Corporate Communications
Fiona Piper, Head of Investor Relations
Tel: +971 4 8811110
Bell Pottinger
Tom Mollo +971 (0) 50 550 4203
Elaine Boucher +971 (0) 50 422 9680
World View Communications
Sanaa Maadad +971 (0) 50 552 2610
Brunswick Group LLP
Jon Coles / Chris Blundell
Tel: +44 (0) 20 7404 5959
Deutsche Bank AG
Iain Macleod, Managing Director, Head of Infrastructure EMEA
Christopher Laing, Managing Director, Head of GCC ECM
Melanie Saluja, Managing Director, Equity Capital Markets
Tel: +44 (0) 20 7545 8000
Merrill Lynch International
Justin Anstee, Managing Director, Head of European Transport
Lorcan O'Shea, Director, Equity Capital Markets
Tel: +44 (0) 20 628 1000
Millennium Finance Corporation
Alexandre Markarov, Managing Director, Investment Banking
Lachlan Davidson, Head of Legal
Tel: +971 4 363 4200
SHUAA Capital PSC
Salam Saadeh, Managing Director, Investment Banking Group
Tel: +971 4 319 9730
Hi. I am not too sure if its too early to ask this question but I am currently based outside UAE (however still have a UAE residence visa) and wanted to know if it would be possible to subscribe for the IPO from abroad (through my relationship manager) or do I have to apply in person?
There's a website which has information about the DP World IPO at www.uae-ipo.com, there's tel numbers there of brokers you can call to ask how to subscribe from overseas.
It might be possible depending on who your broker is since you'll have to get the subscription forms somehow. Good luck, let us know how you get on . _________________ UAE IPO list | posting guidelines
21 October 2007: Intention to Float Announcement
4 November 2007: UAE Retail Offer Application Period Begins
Application Forms & Summary Document available at Receiving Banks and Brokers
Full English Prospectus posted on the website: www.uae-ipo.com (available in the UAE only)
15 November 2007: UAE Retail Offer Application Period Ends
21 November 2007: Pricing
22 November 2007: Allotment confirmation sent by SMS
25 November 2007: Allotment Letters & Refund Cheques mailed
26 November 2007: Listing on the Dubai International Financial Exchange
26 November 2007: Trading Begins
There's a website which has information about the DP World IPO at www.uae-ipo.com, there's tel numbers there of brokers you can call to ask how to subscribe from overseas.
It might be possible depending on who your broker is since you'll have to get the subscription forms somehow. Good luck, let us know how you get on .
Out of the brokerages mentioned in that linkie, which do you reckon is good. I got in touch with Mashreq, but apparently they require a USD account inorder to commence trading, and they only take in phone orders.
With regard to DIFX and DP World, is there a brokerage that has no minimum account balance, option to open AED account and takes in faxes/online (in addition to phone)?
Also, I havent traded IPO's before - have done FX. But just a nagging question (though it might be quite noobish) - lets say I successful subscribe to an IPO and get X number of shares allocated to me (I believe some sort of a certificate will be issued?). Anyways, am I allowed not to sell these shares and keep them with me until such a time I feel the share price has appreciated considerable, and then I can sell them?
Anyways, am I allowed not to sell these shares and keep them with me until such a time I feel the share price has appreciated considerable, and then I can sell them?
That's normally how share ownership works . You keep shares as long as you like. It's unusual to get a share certificate nowadays though.
Think of an IPO as buying "new" shares - you are the first owner. When you buy them from the stockmarket, you're buying "second-hand" shares from other owners, not the original company.
Sorry, I haven't dealt with any of the DIFX brokers so can't help you on that question. I think DIFX listings are denominated in dollars, rather than dirhams, so finding a dirham broker may not be easy.
That's normally how share ownership works . You keep shares as long as you like. It's unusual to get a share certificate nowadays though.
Thanks for the welcome - quite an interesting and informative place you have here. Just stumbled upon it thanks to the mighty Google
If I understand correctly: If I were successfully subscribe to around 2000 shares worth 3USD each, that would mean 6000 USD worth shares - and upon hitting the exchange for some reason (just theoretical scenario) the price of each share drops to 1USD - so in effect I would be holding 2000 USD worth of shares. My question is, due to the depreciation in stock value - will 4000 USD be deducted from my USD account with the broker - much like how it would happen if I were to trade FX? Or I can keep the shares allocated to me even if the price drops heavily, hoping after 5 years that it would pick up
Yes, you keep the shares as long as you like. Once you pay for them, no more money gets taken from your broker account.
Unless you buy them on margin (borrow money). Then, if the value of shares drops below a certain level, the broker can sell some or all of your shares. _________________ UAE IPO list | posting guidelines
If I understand correctly: If I were successfully subscribe to around 2000 shares worth 3USD each, that would mean 6000 USD worth shares - and upon hitting the exchange for some reason (just theoretical scenario) the price of each share drops to 1USD - so in effect I would be holding 2000 USD worth of shares. My question is, due to the depreciation in stock value - will 4000 USD be deducted from my USD account with the broker - much like how it would happen if I were to trade FX? Or I can keep the shares allocated to me even if the price drops heavily, hoping after 5 years that it would pick up
Unlike FX trading, you will have to pay the full amount of USD 6000 in advance & in cash.
If you apply for more than the minimum (say USD 15,000), then you will again have to pay the full amount of USD 15,000 in advance. However, if you are then alloted only the minimum number of shares of value USD 6,000, then the remaining USD 9,000 will be refunded to you.
As you have already paid for the shares in cash & in full, hence there is no further deduction from your account if the price drops.
According to DP World information, prospectus won't be available online until 04 November 2007...
Who wrote this:
4 November 2007:
...
Full English Prospectus posted on the website
Yes, I'd like to see their financials too
I expect there'll be more information over the next week or two. I'll try and keep this updated with whatever's relevant. _________________ UAE IPO list | posting guidelines
Gracias Sharewadi and Sid - dispelled a lot of doubts.
Now all I need is a reputable brokerage. Even though Mashreq is quite prompt in answering my queries, the fact that they want me to open a USD account with them, in addition to a trading account with Mashreq Securities is a pain.
Contacted Mubasher, but wasnt impressed with their know-how; talk about getting frustrated at trying to know if they have online facilities and other non-phone based ways to trade on the DIFX.
Any of you guys have feedback on the other brokerages? Thanks a bunch!
...the IPO would be priced at Dhs 16.33 per share Some serious re-thinking here.
Erm, why?
I'll try and find the article now but the price per share on its own doesn't really mean anything. If Carrefour said their new stock of cheese will cost 16 dhs per piece, would you worry?
Well the price isnt definite - for all we know it could very well be hearsay - reporting in this region isnt exactly factual at times. But lets assume for now Dhs 16.33 is the price per share or somewhere in that region - darn it, it sure will price out a lot of small or first time investors.
I'm trying to track historical data in terms of volumes, with respect to DIFX - how are stocks listed on DIFX performing? DP World in the long run could be profitable, but am trying to decide if I should buy into this IPO.
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Some serious re-thinking here.