DP World did not "pop" when listed on the London Stock Exchange (LSE) this month, but the company is still garnering plenty of market support.
Analysts have long cited the company's logistics business as a reliable profit-maker.
Coupled with its flotation on the LSE, which offers international investors exposure to the world's third-largest operator of container terminals, analysts say it presents a compelling investment.
HSBC yesterday raised its target price on DP World to US$13.93, or 850 pence, from about $11.20 or 700 pence. Analysts at the bank kept their "neutral" rating on the stock but added the company's container-terminal assets looked attractive.
This is despite DP World shares losing as much as 6.6 per cent of their value after just a week of trading in London.
Yesterday, the shares were down 1.3 per cent to 790 pence on the London market in afternoon trading.
On Nasdaq Dubai, where the company is also listed, it traded 1.6 per cent higher at $12.70.
It had listed at 820 pence a share on June 1 in a quiet debut that failed to excite investors.
Not all investors expected a big pop, which is when a share price rises to a big premium on its opening day of trading.
Instead, market chatter turned to the potential of the company's majority-owner, Dubai World, selling more of its shares, effectively boosting the free float and liquidity of the company on both exchanges.
The 20 per cent free-float in the port operator has been regarded as too small, and one obstacle in the way of more liquid trading.
HSBC also cited DP World as a way in for international investment into the Gulf market.
At present this is difficult because of the "frontier" market status tagged to many of the region's bourses.
This category excludes many fund managers from investing billions of dollars because the market is perceived as more volatile and risky.
fhalime@thenational.ae
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Champions parade (UAE timings)
7pm Gates open
8pm Deansgate stage showing starts
9pm Parade starts at Manchester Cathedral
9.45pm Parade ends at Peter Street
10pm City players on stage
11pm event ends
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
