Abu Dhabi-based sovereign wealth fund ADQ is considering listing EtihadAirways on the public market, Bloomberg reports, citing people it says are familiar with the matter. The wealth fund has held talks with banks for a potential offering that could be “as soon as this year,” with the specific timing and size of the offering still undecided. ADQ is eyeing going after both a traditional IPO and direct listing, Bloomberg adds.

Background: ADQ was transferred full ownership of Etihad from the Supreme Council for Financial and Economic Affairs back in October 2022.

First legacy airline to go public in the Gulf? Etihad could be the first major Gulf carrier to trade publicly if the IPO goes through. Saudi low-cost airline Flynas is also preparing to go public this year, tapping Goldman Sachs, Morgan Stanley, and Saudi Fransi Capital for its upcoming IPO in Riyadh, Bloomberg previously reported.

We’ve come close to a carrier listing before: Etihad's rival Emirates held talks to debut on the public market in 2021, as part of the Dubai government’s plan to list 10 state-backed companies on the Dubai bourse to boost trade activity, Reuters previously reported. Dubai has listed five companies on the market so far, collectively raising AED 31.62 bn. It plans to offer up to a 25% stake in its recently established car parking space manager, Parkin, on the DFM this month.

REMEMBER- Airlines are witnessing rebounds in post-pandemic earnings on the back of a rebound in travel, which saw a record 17.5 mn tourists visit Dubai in 2023.

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