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IPO & Listing
Dubai World (the parent company) offered investors a 19.55% stake, amounting to 3,245.3 million shares, in DP World through an IPO offering in November 2007. The IPO was highly successful and was oversubscribed by 15 times. At a par value of USD 0.10, the final price through a book building exercise was set at USD 1.30 a share. The proceeds of the subscription amounted to US$4.22 bn, making it the largest IPO ever in the Middle East at the time and valued the company at US$21.58bn.
DP World Shares (Ticker: DPW) was listed on Dubai International Financial Exchange (DIFX) on 26 November 2007. DIFX was rebranded to Nasdaq Dubai on 18 November 2008 (www.nasdaqdubai.com). A dual listing on the London Stock Exchange (LSE) followed on June 2011. However, due to weak trading volumes on the LSE, DP World delisted the shares from the LSE on January 2015 after shareholder approval. DP World continues to trade on Nasdaq Dubai.
Reverse Stock Split
In a move to bring DP World’s share price alongside global companies with an earnings per share ratio that better reflects the value of the company, DP World undertook a 1 for 20 reverse stock split (issued one new share in place of every 20 being held by investors) in May 2011. For example;
No of shares owned: 4,000
Reverse Stock Split: 1:20
New shares amount: 4,000 / 20 = 200 shares
A cheque would have been posted to the registered address for any residual shares.
It is important to note that this did not affect the total value of your holding as the lower number of shares was automatically compensated by a 20x higher value per share on the next trading day.
Post Stock Split, the DP World’s IPO price would be USD 26 (USD 1.30 x 20).