Etihad Prepares for IPO as Gulf Carriers Eye Stock Market Listings
Deal News | Jan 24, 2025 | Zawya
Etihad Airways and Saudi Arabia's flynas are on the brink of launching initial public offerings (IPOs) this year, marking the first stock market listings by Gulf carriers in nearly two decades. Etihad plans to sell around a 20% stake, potentially raising $1 billion, as it engages with both local and international investors. This move is a part of broader regional efforts by Gulf economies to pivot from oil dependency, capitalizing on sectors like tourism. Meanwhile, flynas, backed by Kingdom Holding, is close to receiving regulatory approval for its IPO in Riyadh. The Middle East's air passenger market has shown an increase in demand, providing favorable conditions for these listings. While Europe struggles with aviation sector challenges, the Gulf's revival from the pandemic positions it as a bright spot for investors.
Sectors
- Aviation
- Investment Banking
- Tourism
Geography
- United Arab Emirates – Etihad Airways is based in Abu Dhabi, UAE, which is pivotal to its IPO plans.
- Saudi Arabia – Flynas, backed by Kingdom Holding, is planning an IPO in Riyadh, Saudi Arabia.
- Middle East – Overall regional context significant for the airline sector and market sentiment.
Industry
- Aviation – This industry involves airlines offering passenger and cargo transport services, relevant here due to Etihad Airways and flynas issuing IPOs.
- Investment Banking – It involves facilitating capital raising for businesses, relevant here as the airlines are preparing for IPOs.
- Tourism – This sector is emphasized as one of the Gulf governments' economic diversification strategies influencing airline growth.
Financials
- $1 billion – Expected proceeds from Etihad Airways' IPO.
- $2 billion – Valuation of flynas according to Prince Alwaleed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Etihad Airways | Target Company | Company | An airline in the UAE, planning to go public through an IPO by selling a 20% stake. |
| flynas | Target Company | Company | A Saudi Arabian budget airline preparing for an IPO backed by Kingdom Holding. |
| Kingdom Holding Company | Bidding Company | Company | Backer of flynas, facilitating its IPO plans in Saudi Arabia. |
| ADQ | Owner | Company | Sovereign wealth fund of Abu Dhabi owning Etihad Airways. |
| Qatar Airways | Other Company | Company | Another major Gulf carrier potentially considering a future IPO. |