Abu Dhabi's Etihad Airways aims to announce the launch of a $1 billion initial public offering this week, two sources told Reuters, in what would be the first IPO of a major Gulf airline in nearly two decades.
Report informs via Reuters that the airline plans to offer 20% of the business by selling new shares to fund its growth ambitions, said the sources, declining to be named as the matter was not public.
Etihad, which is owned by Abu Dhabi's $225 billion wealth fund ADQ, did not immediately respond to a request for comment. ADQ declined to comment.
The IPO comprises 2.7 billion in primary shares, the sources said, in which proceeds go back to the company rather than the main shareholder.
The Gulf listing could be a bright spot for investors in an airline sector that has faced problems in other regions, including Europe, where airlines have struggled with plane delivery delays, engine troubles, labour disruption and surging costs.
Last week, Etihad Airways reported a net profit that more than tripled last year to $476 million. Its earnings were boosted by $5.7 billion in passenger revenue and $1.1 billion in cargo revenue due to "significant operational efficiency improvements".