DP World may float Australian unit in A$1bn IPO

Port operator DP World is considering a A$1 billion ($884 million, Dh3.2bn) initial public offering (IPO) by spinning off some of its Australian assets, a media report said yesterday.

DP World is one of the largest port operators and is owned by Dubai Government-linked conglomerate Dubai World, but is not included in its parent company's $26bn debt restructuring. The planned float comes as the Queensland and the New South Wales governments separately expand their ports and have facilitated the entry of Hong Kong-controlled Hutchison Ports as a third force on top of the duopoly of DP and Asciano.

DP World is expected to retain a substantial stake in the new listed entity, to be called DP Australia, the Australia Financial Review said in an unsourced report.

A DP World spokeswoman in Dubai declined to comment. DP World's Australian unit was not available for comment.

Last month, DP World said it would seek a listing on the London Stock Exchange following disappointment with its market valuation in Dubai. Shares were down three per cent at 0725 GMT.

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