Bloomberg reported that the ADQ Holding in Abu Dhabi is studying a project to list Etihad Airways and offer it for public offering as part of the UAE’s trend towards employing national companies to enhance the local stock market and diversify the economy away from oil.
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Informed sources stated that deliberations are still ongoing between the holding company and major banks on whether the deal will take place in the form of a traditional initial public offering, in addition to a direct listing.
GCC Airlines are Following the Same Strategy
Earlier, Bloomberg News reported that Saudi Flynas, backed by Prince Alwaleed bin Talal, is also seeking to implement an initial public offering in the Kingdom of Saudi Arabia this year, and has appointed Goldman Sachs, Morgan Stanley, and Saudi Fransi Capital to work on this proposition.
At the Pearl of the Gulf, Dubai, the idea of an initial public offering (IPO) for rival Emirates Airlines was floated in 2021 as part of the business hub’s plan to sell stakes in state-owned companies to boost trading volumes.
Etihad Airways Records Record Numbers Following the Global Epidemic Crisis
The COVID-19 pandemic has greatly impacted the aviation sector, Due to the imposition of travel restrictions and the decline in demand among travelers.
Etihad Airways is considered one of the global airlines that succeeded in overcoming its losses in record time, as it last announced its profits publicly in 2022. It recorded record profits in the first half of the year.
The company also undertook one of the largest fleet expansions in the aircraft industry. This made it able to compete with the giants of local competitors, Emirates Airlines and Qatar Airways.
The Abu Dhabi government transferred ownership of the Etihad Aviation Group to the sovereign fund ADQ in 2022 as part of an attempt to strengthen the emirate’s position as a transportation hub.
The decision to transfer ownership was issued by the Supreme Council for Financial and Economic Affairs, which had previously transferred the ownership of the auxiliary companies affiliated with the Etihad Aviation Group to the sovereign fund, with the aim of establishing an integrated company in the field of support services and aviation support.
Source: Bloomberg
