ADQ is considering a listing for Etihad Airways

Abu Dhabi sovereign wealth fund Abu Dhabi Development Holding Company(ADQ) is in talks with banks for a possible listing of Etihad Airways, with a move possibly taking place as early as this year, Bloomberg reported on Friday, citing sources with knowledge of the matter. ADQ is weighing plans for a traditional IPO or a direct listing, with the size up for grabs and timing also under debate. A listing of Etihad would represent the first privatization of a major GCC-based legacy airline and comes in line with moves by the UAE to boost its stock market and develop its non-oil economy, Bloomberg added. Etihad and ADQ spokespersons have refrained from issuing a comment.

Background: Etihad’s ownership was shifted from Abu Dhabi’s Supreme Council for Financial and Economic Affairs to ADQ in 2022. The airline has been benefitting from a rebound in passenger traffic post-pandemic and reported record earnings in H1 2022, the last time the company publicly revealed its financial performance, Bloomberg said. Etihad has undertaken a costly fleet expansion plan in a bid to narrow the gap with local players Emirates and Qatar Airways, but has struggled to close the distance with its longer-established regional rivals, the outlet also said.

Regional aviation players are also looking at IPOs: Etihad’s Dubai-based rival Emirates considered an IPO in 2021, Bloomberg added. Saudi low cost carrier Flynas has hired Goldman Sachs, Morgan Stanley, and Saudi Fransi Capital for an upcoming IPO, with plans to go public as soon as next year.