DP World, the global container terminal operator, said it will seek shareholders approval for a one-for-20 reverse stock split in a bid to boost its share price ahead of a planned listing in London.
"The board believes that undertaking a one-for-20 share consolidation will better position DP World's share price," the Dubai-based company said.
DP World's shareholders will vote on the proposal May 11.
DP World news from JOC:
DP World Cochin Terminal Begins Operations
If approved, each shareholder will get one new ordinary share with a nominal value of $2 for every 20 existing ordinary shares of 10 cents each.
The free float of the company, which is currently 80-percent owned by state-owned Dubai World, will remain unchanged at 19.55 percent.
DP World, which is quoted on Nasdaq Dubai, said in March it is on track for a secondary listing on the London stock exchange this year.
The company boosted earnings 35 percent in 2010 to $450 million from $333 million in the previous year on a 9 percent increase in revenue to $5.2 billion.
-- Contact Bruce Barnard at email@example.com.