Dubai government considering Emirates IPO
Dec 1, 2021: The Dubai government is considering an initial public offering (IPO) for Emirates Airlines, president of the flag carrier Tim Clark said on Monday, as authorities work to boost activity in the local stock market.
The UAE government plans to set up a market maker fund of 2 billion dirhams ($ 545 million) to list 10 state-sponsored companies on its stock exchange and to encourage trading activities.
While speaking to Reuters about the possible listing, Tim Clark said, “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,”
Earlier this month, the chairman of chairman, Sheikh Ahmed bin Saeed Al Maktoum, said it was possible to list the carrier on its subsidiaries. Governments have poured billions of dollars into airlines during the Corona virus pandemic, and state-owned Emirates has received about $ 3.8 billion in equity injections from Dubai, including 2 billion disclosed last year.
The airline lost 5.8 billion dirhams ($ 1.6 billion) for the April-September period, down from 12.6 billion dirhams in the same period last year.
However, Clark said he does not expect further government support over the next year so long as the new variant of the coronavirus does not cause too much disruption.
“We are restoring our cash position at pace. So it is unlikely, notwithstanding the Omicron variant and its effects… if it’s not as bad as people think it may be, then we see no further recourse to the owner putting equity into the business.
Clarke said that although the Emirates would suffer losses this year, it would be much lower than in the previous 12 months.
For 2022, he expects the airline to break even or make a profit. “I am happy to say that we have already returned to profitability, we have been profitable for the last six or seven weeks,” he said.
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