It seems somewhat counter-intuitive, given the batterings meted out to aviation stocks during the last 21 months, but Emirates could be the next major airline heading to the stock market.
The Dubai-based carrier’s president, Sir Tim Clark, has indicated that an initial public offering (IPO) could be imminent depending on the view of its owner, the Dubai government, which is keen to promote its local stock market.
Speaking ahead of Reuters Next, a virtual conference bringing together global politicians and business leaders, Sir Tim said of a possible listing: “Yes, there has been talk about it.
“Yes, there has been, perhaps a little bit more flesh on the whole subject than there has been in the past.
“I’m waiting instructions as to how this is going to affect the Emirates Group.
“What the government of Dubai decides to do…is up to them, I would basically do as I am bid.”
Talk of a possible privatisation of Emirates has cropped up from time to time in the past.
The airline’s chairman, Sheikh Ahmed bin Saeed Al-Maktoum, said as long ago as 2007 that an IPO was possible with Sir Tim indicating at the time that the carrier would be valued at $20-$30bn.
The late Sir Maurice Flanagan, who co-founded the airline in 1985, said in 2012 that an IPO would be appropriate one day.
Sheikh Ahmed bin Saeed Al Maktoum said as long ago as 2007 that an IPO was possible Pic: AP
But the drumbeat towards a possible privatisation has intensified in recent weeks.
CNBC Arabiya TV reported earlier this month from the Dubai Air Show that Sheikh Ahmed had indicated a listing was possible.
What has changed is that privatisation is on the agenda in Dubai as part of a wider push to encourage activity on the local stock exchange.
The emirate’s government is considering plans…
Source : skynews
