Dubai DP World is delisting from the Nasdaq
By Caoimhe Toman
Date: Monday 17 Feb 2020
(Sharecast News) - Dubai's DP World, one of the largest port operators around the globe, announced on Monday that it is delisting from the Nasdaq and returning to private ownership.
"The DP World Board has concluded that the disadvantages of maintaining a public listing outweigh the benefits," Yuvraj Narayan, group chief financial, strategy and business officer of DP World, said in the statement Monday.
"Delisting from Nasdaq Dubai is in the best interest of the company, enabling it to execute its medium to long-term strategy ... In contrast, public markets typically hold a short-term view. As a result of this gap, the DP World strategy is not fully appreciated by the equity markets, and consequently is not reflected in the company's share price performance."
The port's parent company, Port and Free Zone World offered to buy 19.55% of DP World's shares traded on the Nasdaq Dubai for $16.75 a share on Sunday, the statement from the company said.
Following the announcement, the firm's stock rose 10% to $14.30 in morning trade in the Middle East.
DP World had a market value of about $10bn as of Monday morning, whereas the whole exchange is worth over $130bn.
DP World Group Chairman and CEO Sultan Ahmed bin Sulayem described the ports and logistics industry as in the midst of a major transition.
"Returning to private ownership will free DP World from the demands of the public market for short term returns which are incompatible with this industry, and enable the company to focus on implementing our mid-to-long-term strategy," he said.
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