Emirates may opt to list soley on DIFX
Any initial public offering (IPO) by Emirates airline will likely take place solely on the Dubai International Financial Exchange (DIFX) as Dubai looks to bolster foreign interest in its flagship bourse, an analyst said on Tuesday.
Reports on Monday quoting Emirates Chairman Ahmed bin Saeed Al-Maktoum claimed the airline is considering selling shares in the company to raise money to fund expansion plans, valuing the company at around $20 billion.
However, airline President Tim Clark said later the same day that $20 billion would be a “minimum” valuation, and the company would be worth as much as $30 billion in any IPO based on “multiples and profitability”.
The analyst, who did not wish to be named, said an Emirates IPO would bring a “very strong equity story” to the DIFX, which Dubai's government has been keen to promote to international investors to increase the amount of foreign money flowing into the emirate.
“If you are a fund manager sitting in London or New York or Hong Kong, and you like the growth story of Middle East aviation, you will want to buy and hold Emirates airline. You will have to come to DIFX to make that trade,” the analyst said.
The analyst pointed to the announcement last week that Dubai will list around 20% of port operator DP World on the DIFX next month as a sign of the government's strategy.
“DP World has taken time to establish itself as an arm of government and as part of the global village… It wouldn’t surprise me to see Emirates following a similar path,” he said.
"An exclusive listing would be a huge vote of confidence for the region."
The airline operates 105 aircraft and plans to boost that to more than 180 by 2013, expanding its network of 85 destinations to 110, by adding destinations in south and north America, Africa and east Asia.
Emirates is also the largest customer for the Airbus A380, the world's biggest passenger carrier.
Source
Reports on Monday quoting Emirates Chairman Ahmed bin Saeed Al-Maktoum claimed the airline is considering selling shares in the company to raise money to fund expansion plans, valuing the company at around $20 billion.
However, airline President Tim Clark said later the same day that $20 billion would be a “minimum” valuation, and the company would be worth as much as $30 billion in any IPO based on “multiples and profitability”.
The analyst, who did not wish to be named, said an Emirates IPO would bring a “very strong equity story” to the DIFX, which Dubai's government has been keen to promote to international investors to increase the amount of foreign money flowing into the emirate.
“If you are a fund manager sitting in London or New York or Hong Kong, and you like the growth story of Middle East aviation, you will want to buy and hold Emirates airline. You will have to come to DIFX to make that trade,” the analyst said.
The analyst pointed to the announcement last week that Dubai will list around 20% of port operator DP World on the DIFX next month as a sign of the government's strategy.
“DP World has taken time to establish itself as an arm of government and as part of the global village… It wouldn’t surprise me to see Emirates following a similar path,” he said.
"An exclusive listing would be a huge vote of confidence for the region."
The airline operates 105 aircraft and plans to boost that to more than 180 by 2013, expanding its network of 85 destinations to 110, by adding destinations in south and north America, Africa and east Asia.
Emirates is also the largest customer for the Airbus A380, the world's biggest passenger carrier.
Source
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