DP World came out with an initial public offering with the aim of expanding its operations in the emerging markets like Latin America and Africa. The company decided to sell its' 3.245 billion equity shares through the IPO. Other than these 3.245 billion equity shares, DP World also proposed to sell 572.7 million shares through Greenshoe Over Allotment Option.
DP World IPO refers to the Initial public Offering of Dubai Ports World, that was launched in November, 2007. The company decided to come out with this Initial Public Offering in order to expand its' operations in the markets Latin America and Africa.
Details of the Initial Public Offering
DP World IPO aimed at raising $4.32 billion through this Initial Public Offering. The company decided to sell its' 3.245 billion equity shares through the IPO and fixed the Price Band of shares as $1 to $1.30 per share. It was decided that these equity shares would be sold at a price determined through the international book building process.
Other than selling of 3.245 billion equity shares, DP World also proposed to sell 572.7 million shares through Greenshoe Over Allotment Option. The shares of DP World were proposed to be listed on DIFX or Dubai International Financial Exchange.
The company declared that its' equity shares would be offered to the residents of UAE, nationals of Gulf Arab oil producing countries and to the global institutional investors.
According to Deutsche Bank, which was appointed as one Book Running Lead Manager of the IPO Deal, revealed that the total Initial Public Offering would represent 20% of Dubai Port World. The other BRLMs or Book Running Lead Managers, appointed by DP World were Dubai Islamic Bank, Merrill Lynch and Shuaa Capital.
Reasons behind the IPO
When DP World decided on the Initial Public Offering, it is mainly aimed at taking the company to a global level from the existing local platform. DP World planned to use the capital, raised through the IPO, in expanding its' network and in building new container ports.
The company also thought of using a part of the capital, raised through IPO, in paying back Islamic Bonds.