Kuwaiti aircraft leasing company Alafco has hired Deutsche Bank to advise it on a potential sale of global depositary receipts (GDRs) in London, two bankers aware of the matter said.

The bank is looking at Alafco's operations to ensure it is ready for the additional scrutiny that comes with a London listing, the sources said, speaking on condition of anonymity as the information is not public.

A GDR represents a block of shares in a company. GDRs are often issued by firms in emerging market countries to allow foreign investors to buy the stock more easily.

Alafco's parent company, Kuwait Finance House (KFH), said in January that some of the leasing firm's shares may be listed on an international exchange and due diligence was planned, although it gave no further details. KFH owns 53.69 per cent of Alafco.

Alafco made a profit of KD25.6 million ($89.7 million) in its last financial year ended on September 30, 2012, a 45 per cent decline from the previous year.

The timing of the GDR sale and the amount, if any, that a listing could raise were still unknown, the bankers said.

In response to queries on the planned listing, Alafco referred back to the statement in January, adding: "We are still conducting that study and we have not reported anything back to our shareholders."

Gulf companies have been looking to London and other stock exchanges outside the region for both initial and secondary listings as local markets struggle to shake off the impact of the 2008 market crash.-Reuters