Etihad Airways is set to announce the launch of an initial public offering worth $1 billion in March, sources have revealed.
This marks a significant milestone in the aviation industry, as it would be the first public listing by a major Gulf airline in nearly two decades, reports The Arabian Post.
The airline, which is fully owned by Abu Dhabi's sovereign wealth fund ADQ, intends to offer 20 per cent of its business to the public, with the funds raised being allocated towards accelerating its expansion plans.
The decision to go public highlights Etihad's ambitions to position itself as a stronger player in the global airline industry.
The move also underscores the growing trend among Gulf-based companies to raise capital through IPOs, following a wave of high-profile listings in the region.
The Middle East has witnessed a surge in IPO activity in recent years, driven by a desire for diversification and economic growth, in line with the region's broader efforts to reduce reliance on oil revenues.
Etihad's decision to open up its equity to public investors is part of a larger strategy aimed at enhancing its operational capabilities and competing more effectively with regional and international rivals.
The airline's plans include expanding its fleet, increasing flight frequencies, and potentially adding new routes to cater to growing demand in key global markets.
The IPO also reflects the broader changes taking place in the aviation sector, particularly in the Gulf region. Airlines in the region, such as Emirates and Qatar Airways, have been aggressively investing in their fleets and expanding their networks in a bid to capture more market share. Etihad's move to become a publicly traded entity comes as the airline looks to consolidate its position as a leading regional carrier, competing with its peers.
The airline is reportedly confident that investors will be attracted to its growth prospects, as air travel demand rebounds and the aviation sector experiences a strong recovery.
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