Abu Dhabi’s Etihad Airways will push back its planned $1 billion initial public offering until at least next month, after the Eid al Fitr holiday, two people with knowledge of the matter said.
Etihad had not officially announced a date for the IPO, but sources had told Reuters that the airline would make an announcement last week, after reporting a tripling of profits, in what would be the first new listing of a major Gulf airline in nearly two decades.
Reuters could not determine the reason for the delay. The sources spoke on condition of anonymity because they were not authorised to speak publicly.
Etihad, which is owned by Abu Dhabi’s $225 billion wealth fund ADQ, declined to comment, as did ADQ.
The Gulf offering could be a bright spot for investors in the airline sector, which has elsewhere has been contending with delivery delays, labour disruption, surging costs and engine troubles.Etihad, which started operations in 2003, had planned to issue shares for about 20% of its business to fund its growth ambitions, sources told Reuters.
Last month, it said net profit had more than tripled last year to $476 million. The carrier has been through a multi-year restructuring and management shake-up but has expanded under new CEO Antonoaldo Neves.
Reuters
