By James Cordahi
DUBAI, Nov 8 (Reuters) - DP World, the Dubai container-port
handler looking to raise up to $4.32 billion in a record Middle
East IPO, should post annual profit-growth averaging 27 percent
through 2011 as it taps global trade flows, an arranging bank
said.
Profit is expected to rise 55 percent next year to $564
million, $630 million in 2009 and as much as $923 million in
2011, said Dubai-based Shuaa Capital, one of the four banks
arranging the Middle East's biggest initial public offering.
DP World "will record sustained growth in revenue over our
forecast period, driven by regular capacity additions, continued
high and even increasing utilisation of most of the operator's
portfolio, and a strong price environment in terms of port
tariffs," Shuaa said in the report.
DP World's capacity will almost double by 2011 to 81 million
containers per year as it expands in Dubai, Britain, Romania and
Turkey, Shuaa said.
The company's IPO, which closes on Nov. 20, will value it as
much as $21.6 billion.
Container throughput in the Middle East, where DP World is
the largest operator, should grow an average 9.6 percent per
year for the next five years, Shuaa said, citing London-based
Drewry Shipping Consultants.
Middle East economies, especially in the Gulf, are expanding
as oil prices surge to records approaching $100 per barrel,
almost five times as much as six years ago.
Dubai's Jebel Ali port is DP World's biggest operation, followed by China's Qingdao and India's Nhava-Sheva.
DP World is offering as many as 3.32 billion shares at
between $1 and $1.30 per each in a bookbuilding exercise.
Depending on the price at which they are sold, DP World
shares will be valued at between 50 and 63 times expected 2007
earnings, and 20 and 25 times expected 2011 earnings, according
to Shuaa.
Shuaa's outlook compares with one from another of the
arranging banks that forecasts profit rising at an average 38
percent per year in the three years to the end of 2009.
[IDnL07814187]
Deutsche Bank, Merrill Lynch & Co and Dubai Islamic Bank are
the three other lenders helping arrange the IPO that began on
Sunday.
(Editing by Andrew Callus)
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Keywords: DPWORLD FORECAST/