ADQ explores potential listing of Etihad Airways

ADQ, the UAE’s sovereign wealth fund, is considering a potential listing of Etihad Airways, making it the first publicly traded airline in the GCC. 

The fund has held discussions with banks on a possible floatation deal as soon as this year, Bloomberg reported, citing a source familiar with the deal.

ADQ has been weighing the options of a conventional initial public offering (IPO) or a direct listing, they added.

Deliberations are ongoing and details of the IPO size and timing are undecided.

The ownership of Etihad Airways was transferred to ADQ from Abu Dhabi’s Supreme Council for Financial and Economic Affairs in 2022 to boost the emirate’s status as a transport hub.

Last month, Etihad Airways told staff that it made a profit last year, helped by “milestone” revenues of $5.5 billion, and is expecting a “remarkable” performance in 2024, AGBI reported. 

In an internal memo sent on January 25, which followed a presentation by chief executive Antonoaldo Neves, the company predicted that revenues would reach $6.5 billion this year “if all goes to plan”. 

The UAE’s national carrier “achieved profitability” in 2023, the memo said, without mentioning a figure.