Dubai Ports to sell more shares in $5bn IPO

DUBAI: Dubai lifted the stake it plans to sell in port operator DP World to 23% on stronger than expected demand, allowing it to raise as much as $4.96bn in the Middle East’s largest initial public offering. Two people familiar with the transaction told Reuters the shares would price at or close to the top of the $1to $1.30 indicative price range the world’s fourth-largest container handler gave earlier this month.

One of the people, speaking on condition of anonymity, said prospective investors are now being given an indicative price range of $1.25 to $1.30. Pricing will be decided on Tuesday. DP World will sell 3.245bn shares, plus a greenshoe over-allotment option of 572.7mn shares, the company’s state-owned parent, Dubai World, said in a statement yesterday. It had planned to sell up to 20% of the company.

Source: Gulf Times