DP World said it plans a one-for-20 share consolidation, taking another step towards a planned London listing and helping boost its shares to their highest in two months. DP World, one of the more profitable assets of debt-laden Dubai World and which said last month its London listing was on track, said on Wednesday the proposed move was to put its share price more on a par with global companies.
DP World shares, widely held by many fund managers in the region, closed 1.9 percent higher on the Nasdaq Dubai bourse. The stock, among the few on the bourse which trades on a daily basis, rose as high as $0.65, its highest since early February. The company, which sold its Australian port operations last year, said its shareholders would vote on the matter on May 11. If approved, each shareholder will get one new ordinary share with a nominal value of $2.00 for every 20 existing ordinary shares of 10 cents each. Trading in the new ordinary shares will start on May 19. DP World said its free float would remain unchanged at 19.55 percent. The consolidation will reduce the number of issued shares to 830 million from 16.6 billion.
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