Abu Dhabi’s Etihad Airways plans to announce the launch of a $1 billion initial public offering this week, two sources said, in what would be the first IPO by a major Gulf airline in nearly two decades, reported by Reuters.
The airline plans to offer 20% of the business by selling new shares to fund its growth ambitions, the sources said, declining to be named because the matter was not public. Etihad, which is owned by Abu Dhabi’s $225 billion investment fund ADQ, did not immediately respond to a request for comment. ADQ declined to comment.
Gulf listing
The sources said the IPO will consist of 2.7 billion initial shares, with proceeds going back to the company rather than the main shareholder. A listing in the Gulf could be a bright spot for investors in an aviation sector that has been struggling in other regions, including Europe, where airlines are grappling with aircraft delivery delays, engine problems, disruptions and soaring costs.
Last week, Etihad Airways reported net profit that more than tripled to $476 billion last year. The carrier, which started operations in 2003, has undergone years of restructuring and management changes but has expanded under new CEO Antonoaldo Neves.
Etihad Airways plans to expand routes by 2030
Etihad Airways plans to expand routes to more than 125 airports by 2030 as part of Abu Dhabi’s push to become a global tourism hub as the oil-rich emirate invests in diversifying its economy. This included the launch of a multi-billion dollar new terminal at Abu Dhabi’s Zayed International Airport in 2023, tripling the hub’s annual capacity to 45 million passengers. Etihad will become the second company this year to launch an IPO in the UAE after technology services firm Alpha Data said this month it was offering a 40% stake to investors.