Abu Dhabi taps banks for Etihad Airways IPO, Bloomberg News reports

Abu Dhabi wealth fund ADQ has chosen advisers, including HSBC Holdings, Citigroup, and First Abu Dhabi Bank for a potential initial public offering of Etihad Airways, Bloomberg News reported on Thursday.

An Etihad Airways plane lands at Heathrow during Storm Isha in London, Britain, January 22, 2024. REUTERS

Europe-based Rothschild & Co is acting as an independent financial adviser to ADQ, which owns the United Arab Emirates' national carrier, the report said, citing people familiar with the matter.

The fund had previously been weighing a direct listing for Etihad instead of a traditional IPO, the report said.

Citigroup and Etihad declined to comment on the Bloomberg report, while FAB, ADQ, HSBC, and Rothschild did not immediately respond to Reuters' requests for comment.

Etihad CEO Antonoaldo Neves said on Wednesday the airline has returned to profit and was improving its transparency, governance and balance sheet to be ready for an IPO should ADQ decide to list it.

ADQ has listed several holdings since 2022 as part of a broader strategy to diversify the oil-rich emirate's economy, deepen capital markets and spur investment.