Etihad pitches investors on possible IPO as Mideast lifts off
The new year is shaping up as pivotal for the Middle East aviation industry as Gulf airlines look to raise money on regional stock markets and international carriers cautiously return to Israel and Lebanon.
After debating a share offering on and off for the past decade, Abu Dhabi-based Etihad is planning to talk to investors next week about the possible sale of a 20% stake through an IPO that could raise close to $1 billion, Reuters reports.
Etihad, which is owned by the ADQ sovereign wealth fund and competes with Dubai-based Emirates, would seek to arrange the share sale before the end of the first quarter with presentations aimed at both UAE and international investors, the news agency said.
In Saudi Arabia, the budget carrier flynas, which is owned by Prince Alwaleed Bin Talal’s Kingdom Holding investment company, is waiting for regulatory approval to move ahead with its own initial share offering, CEO Talal Al-Maiman told Al-Arabiya this week.
An IPO by either Etihad or flynas would be the first for a Gulf carrier since Kuwait’s Jazeera Airways sold shares in 2008.
After making a splash last year with its designer uniforms and plush cabins, Saudi Arabia’s new national carrier Riyadh Air suffered a setback this week, announcing that it will be forced to push back its launch date to the third quarter of 2025 after delays to delivery of its fleet from Boeing.
On the other hand, ceasefires in Gaza and Lebanon are leading international airlines to restore their routes to Tel Aviv and Beirut, with Lufthansa, British Airways and Wizz Air announcing Israel service will start again between February and April.
Emirates announced on Friday it will resume flights from Dubai to both Beirut and Baghdad on Feb. 1 after suspending service because of the regional conflicts.