Abu Dhabi’s Etihad Airways and Saudi Arabia’s Flynas are gearing up to list on local stock markets this year, marking the first IPO by Gulf carriers in nearly two decades. Sources tell Reuters that Etihad will sound out investors next week ahead of a potential sale of around a 20 percent stake, and potentially raising around US$1 billion.
The airline plans to expand its destination network to over 125 airports by 2030, up from the current 90.
The CEO of the Flynas partial owner, Kingdom Holding, Talal Al Maiman told Al Arabiya TV that the airline planned to list 30 percent of its shares on the Riyadh stock exchange. He said that the airline continues to make profits. His reference likely did not include COVID-19 pandemic years when local and global airlines suffered major losses. Flynas has a valuation estimated at over US$2 billion.
Aviation analyst John Strickland says the potential listings would come amid a flurry of listings in the region and allow investors to access a market with significant growth potential, as local governments invest heavily in tourism and infrastructure.
The Gulf IPOs could also become a bright spot for investors in an airline sector that has faced problems in other regions, including Europe, where airlines have struggled with issues such as plane delivery delays and labor disruption, Reuters said.
Launched in 2007, budget airline Flynas operates a fleet of 60+ aircraft that connect more than 70 domestic and international destinations through over 1,500 weekly flights. It plans to grow its fleet to more than 160 aircraft by 2030.
