Etihad Airways’ initial public offering (IPO) will not take place this year, two people familiar with the matter told Reuters.
Rumours have been swirling over the past few months regarding the possibility of Abu Dhabi’s carrier going public. The airline, owned by sovereign wealth fund ADQ, had even considered listing this year, Reuters reported.
The company’s leadership has now decided the listing will take place no sooner than 2025. The desire to present investors with 2024 financial results that will show a strong performance as well as the region’s geopolitical instability in the region were both named as reasons for the delay.
ADQ declined to comment. A spokesperson for Etihad told the news agency it “does not comment on rumour or speculation”.
The GCC aviation infrastructure market size is estimated to have reached $125 billion in 2023 and has been predicted to grow to $158.31 billion by 2029, according to Mordor Intelligence. Overall, airline profitability in the Middle East is expected to top $3.8 billion in 2024, up 22.5% from the previous year’s $3.1 billion, according to a new forecast by IATA.
Etihad is not the only Gulf carrier eyeing a listing. Earlier this year, Flynas confirmed its intention to list its shares on Tadawul in 2024, amid a boom in initial public offerings in the country.
