Abu Dhabi's Etihad Airways is Mulling IPO, in Talks with Banks: Report

Etihad Airways, the long-haul operator based in Abu Dhabi, could become one of the next UAE companies to initiate an initial public offering (IPO) or a direct listing.

According to a Bloomberg report, the sovereign wealth fund of the UAE capital, ADQ, is contemplating listing the carrier and has engaged in discussions with banks regarding a potential deal.

A potential agreement could be reached within this year. As per the report, the wealth fund has been considering both a traditional IPO and a direct listing. ADQ and Etihad representatives have refrained from commenting on the matter.

Should the plans materialise, Etihad would mark the first carrier in the GCC to undergo public listing.

The airline achieved a notable milestone by recording a core operating profit of $296 million in the first half of 2022, a significant improvement from the $392 million loss reported the previous year.

This turnaround was attributed to the expansion of its network capacity in response to robust travel demand. Passenger revenues soared, tripling to $1.25 billion in the first six months of the year.

In 2022, complete ownership of Etihad Aviation Group was transferred to ADQ as part of a strategic move aimed at bolstering Abu Dhabi's position as a prominent global aviation hub.

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