Gulf airline considers public offering

Source: Supply Chain Digital

Date :29/10/2007 10:12:38

Emirates, the world's eighth largest airline , is considering an initial public offering (IPO) that could value the Gulf carrier at up to $20 billion, according to The Times

Sheikh Ahmed bin Saeed al-Maktoum, Chairman and Chief Executive of Emirates, told The Times that an IPO was now part of the airline’s strategy.

Share deal

The move comes a week after DP World announced it will sell about 20 percent of its shares worth at least $3.5 billion next month in what will be one of the Middle East's largest IPO. DP World will list on the Dubai International Financial Exchange (DIFX) by the end of November.

Sheikh Ahmed said: “I think more and more Dubai companies will see that this is important in the near future. The DP World IPO is a very positive thing. I think for sure Emirates will also, in the future, do something like that.”

The airline would most likely seek a primary listing of up to 25 percent of its stock in Dubai.

Emirates listing on the DIFX would be a significant boost to the exchange’s credibility underlining the stature of the DIFX as both a regional and international hub for investors.

No acquisitions

Sheikh Ahmed ruled out a bid for a rival such as British Airways or struggling Alitalia, saying Emirates would focus on its own growth strategy.

The Dubai based airline posted revenues of AED29.8 billion ($8.11 billion) in 2006. Emirates earlier announced it is ordering eight more Airbus A380s, bringing its total order for the superjumbo to 55.

October 29, 2007

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