20 September 2017

Aviation


Air Arabia to launch IPO in first quarter
January 2007 26

AIR Arabia has applied to the UAE Ministry of Economy and relevant regulatory authorities for approval to launch an Initial Public Offering (IPO) in the first quarter of this year.

The Sharjah-based airline, which recently announced the start of operations to Pakistan’s Peshawar and Karachi, will become the first airline in the Gulf to go public.
Air Arabia chairman Sheikh Abdullah bin Mohammad Al Thani said: “We are extremely pleased to announce that Air Arabia has submitted its application to the UAE Ministry of Economy to convert the carrier into a public shareholding company ahead of a planned IPO. Upon approval, the airline will launch its IPO.”
He said the airline had established itself as one of the region’s great success stories in the three years since its launch. “Born in Sharjah and serving a region that stretches across the Middle East, North Africa, Indian subcontinent and Central Asia, Air Arabia has set its sights on reaching even greater heights.”
Shuaa Capital has been appointed the Financial Advisor, Lead Manager and Bookrunner for the IPO.
Having served more than 3.4 million customers since it began operations and currently serving 32 destinations, the company has been profitable since its second year of operations.
Air Arabia CEO Adel Ali said: “The decision to go public was prompted by our desire to increase our equity capital to support our ambitious plans for future growth.”
He added: “Based on both the individual success of Air Arabia and the growing demand for commercial and leisure travel in the region, we are planning to expand the company’s current operating fleet over the next five years from nine Airbus A320s to a total of 34 aircraft.”
Makram Kubeisy, managing director of SHUAA Capital’s Investment Banking Advisory, said: “We believe that local and regional equity markets are an attractive source for growth capital for companies with a successful track record, such as Air Arabia. Indeed, the carrier is financially sound and has a strong management team that has significantly grown the business and profitability in a remarkably short span of time.”







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