Etihad Airways ‘aims to announce IPO this week’

Abu Dhabi’s Etihad Airways aims to announce the launch of a $1 billion initial public offering this week, two sources told Reuters, in what would be the first IPO of a major Gulf airline in nearly two decades.

The airline plans to offer 20% of the business by selling new shares to fund its growth ambitions, said the sources, declining to be named as the matter was not public.

Etihad, which is owned by Abu Dhabi’s $225 billion wealth fund ADQ, did not immediately respond to a request for comment. ADQ declined to comment.

The IPO comprises 2.7 billion in primary shares, the sources said, in which proceeds go back to the company rather than the main shareholder.

The Gulf listing could be a bright spot for investors in an airline sector that has faced problems in other regions, including Europe, where airlines have struggled with plane delivery delays, engine troubles, labour disruption and surging costs.

Last week, Etihad Airways reported a net profit that more than tripled last year to $476 million.

The carrier, which started operations in 2003, has been through a multi-year restructuring and management shake-up but has expanded under new CEO Antonoaldo Neves.

It is planning to expand its destinations to over 125 airports by 2030 as part of Abu Dhabi’s efforts to become a global travel hub as the oil-rich emirate invests to diversify its economy.

That has included the launch of a multibillion-dollar new terminal at Abu Dhabi’s Zayed International Airport in 2023 that tripled the hub’s annual capacity to 45 million passengers.

Etihad would be 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.

Reuters