DP World's worldwide investment commitments exceed $4b

Rotterdam: DP World's investment commitments exceed $4 billion but the company has made no firm decision whether to go for a public sale of shares to support growth, a senior official said.

"We have commitments of more than $4 billion around the world," Jamal Majid Bin Thaniah, vice-chairman of DP World and Group CEO of Ports and Free Zones World of Dubai World, told Gulf News.

In its latest venture, the company signed an agreement to build a Dh4.5-billion container terminal in Rotterdam in partnership with four shipping companies. The company is involved in new terminal projects in several countries, with large projects planned in Britain, India, China and Turkey.

Bin Thaniah denied the recent reports that said DP World is planning for an initial public offering (IPO) before the end of the year to raise some $4.2 billion to fund growth.

Reuters reported, quoting unnamed sources, that DP World plans to sell about 20 per cent of its shares and list them on the Dubai International Financial Exchange. "This is market speculation. We have not made a decision," Bin Thaniah said. A spokesperson said the company is "not constrained" to do an IPO as various funding options are being looked at.

DP World's parent entity Ports, Customs and Free Zone Corporation (PCFC) sold $3.5 billion of partially-convertible sukuk in January 2006 to fund the $6.8-billion acquisition of P&O.

The DIFX-listed sukuk matures in January 2008 and investors have the option of converting 30 per cent of their securities into any IPO by PCFC subsidiaries.