Etihad CEO Antonoaldo Neves Advances Plans for Potential Stock Listing
tihad Airways CEO Neves has been instructed by owners to operate as if publicly listed, focusing on financial performance and governance. Progress towards a potential IPO is underway, aiming to raise capital for expansion. Recovery from past losses has prompted a strategic focus on improved performance. Banks have been selected for a potential offering, estimated to raise up to $1 billion. Neves emphasises the IPO as a means to raise capital, not an end goal, amid a post-pandemic travel resurgence.
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Jun 4, 2024
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Etihad Airways is progressing with a potential initial public offering (IPO), which would mark the first IPO for a major airline in the Middle East. This listing aims to support the Abu Dhabi flag carrier in raising extra capital for its expansion efforts.
“We’re working very hard to make it happen whenever it is the time," Chief Executive Officer Antonoaldo Neves said in an interview with Bloomberg TV at the IATA annual general meeting in Dubai. An IPO “is never an endgame, it’s just another source for us to raise capital."
Having recovered from significant losses and unprofitable investments in regional carriers due to a previous expansion, Etihad Airways is now being managed as if it were already publicly listed, focusing on improving financial performance and corporate governance. While any decision regarding an IPO ultimately rests with shareholders, the airline has selected banks for a potential offering, with estimates suggesting it could raise to $1 billion. This move would establish Ethihad as the first publicly traded primary Gulf hub carrier and follow a resurgence in international travel post-pandemic. Owned by Abu Dhabi sovereign wealth fund ADQ, Etihad competes with Emirates and Qatar Airways for transfer traffic. Emirates President Tim Clark has mentioned the potential for an IPO for his airline but clarified that there are no immediate plans for such a move.
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