Etihad Airways could hit ADX before the end of February

ADQ’s Etihad Airways could float a 20% stake on the ADX as early as this month, Group CEO Antonoaldo Neves told The Sunday Times. Etihad reportedly kicked off its IPO roadshow last week. The offering could see the company raise up to USD 1 bn, implying an overall valuation of USD 5 bn.

Background: While the offering was initially planned for last year, Reuters reported in September that the idea to present investors with 2024 financial results, along with geopolitical instability, weighed on the timing.

IPO + direct listing? While Neves mentioned that this is aimed at raising capital, sources told Bloomberg earlier that the airline is also considering a direct listing. “I can say that Etihad is ready. Any airline in the world that has the aspiration to grow and be influential — they need to tap into different sources of capital,” Nevedes said.

SOUND SMART- A direct listing allows all shareholders to execute transactions on their shares, ultimately providing more liquidity to shareholders.

A first in almost two decades: If Etihad manages to ring the bell this month, it would beat Saudi Arabia’s budget airline Flynas to become the region’s first airline listing since Kuwait’s Jazeera Airways’ IPO in 2008. Flynas is expected to receive final approval from the Capital Market Authority soon to take a 30% stake public, the company’s CEO Prince Al Waleed Bin Talal said last month.

ADVISORS- ADQ reportedly tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanley as joint bookrunners for the IPO, with HSBC Holdings, First Abu Dhabi Bank (FAB) and Citigroup said to be acting as financial advisors.

IN OTHER IPO NEWS-

Oman Investment Authority subsidiary Asyad Shipping will reportedly set an indicative price range for its IPO next week, IFR reports citing bankers it says are involved in the transaction. Asyad is gearing up to float at least a 20% stake on the Muscat Stock Exchange (MSX) with an option to upsize to 23%. The USD 376 mn secondary offering could value Asyad shipping at USD 1 bn. Regulatory approvals and delays in securing cornerstone investments are reportedly slowing down the process, though exact dates remain fluid, the sources said.

What’s next? Bookbuilding for the potential IPO is scheduled to begin this month, with the listing anticipated in early March. The offering will be available in two tranches with 75% allocated for qualified institutional investors — out of which 30% are earmarked for anchor investors — and the remaining 25% pegged for retail investors.