Civil Aviation
Etihad Airways Navigates IPO Route for Gulf’s Aviation Sector
In a significant development, Etihad Airways PJSC, the renowned airline based in Abu Dhabi, is contemplating a historic move towards becoming a publicly-traded entity.
Abu Dhabi’s investment and holding company, ADQ, which acquired ownership of the airline in October 2022, is reportedly considering a public listing for Etihad Airways, marking a potential milestone in the Gulf region’s aviation sector.
Discussions have been underway between ADQ and various banks to explore the possibility of a listing as early as this year. The decision-making process includes evaluating both traditional Initial Public Offering (IPO) and direct listing options. While specifics such as the timing and scale of the listing are still being deliberated, the involvement of international banks indicates a thorough planning process. As reported by Bloomberg.
The move towards a public listing reflects Etihad Airways’ ambition to set a precedent within the Gulf’s aviation industry. If realized, Etihad could become the first major hub carrier in the region to be publicly traded, potentially opening up new avenues for growth and investment.
However, the journey towards a public listing involves careful consideration and strategic decision-making. While other airlines in the Gulf region, such as Emirates and flynas, have also explored the possibility of going public, Etihad’s move could have significant implications for the industry as a whole.
In parallel, the Riyadh-based airline, backed by billionaire Prince Alwaleed Bin Talal, has also been making preparations for its stock market listing, indicating a broader trend towards public offerings within the Gulf’s aviation sector.
