Emirates floats idea of listing in London

Emirates floats idea of listing in LondonBy Phil Davies

State-controlled companies in Dubai such as the Emirates airline are being considered for a listing in a move that could raise billions of pounds.The emirate’s finance chief Mohammed al-Shaibani revealed that some of the state-owned companies could also be partially floated on the London Stock Exchange.

“We have a lot of entities here [in Dubai] that can also go public and that should be a fantastic way to raise capital if we need it,” he told The Telegraph.

Al-Shaibani, who oversees the Dubai government’s main investment holding company, said that Emirates, Fly Dubai, Dubai Airports and the emirate’s aluminium smelting company were among a list of government entities that could all be sold to the public at some point to raise funds.

With annual revenues exceeding $21 billion, Emirates is the jewel in Dubai’s business empire and a company that would command a significant premium if its shares were to be partially listed.

By 2020, the company aims to be carrying 70 million passengers a year, nearly twice the number it currently flies.

By that time it will operate a giant fleet of 250 aircraft from Dubai, which will boast two of the world’s busiest airports.

“We are dead serious. I cannot list it [Emirates] now because there is still value to be created there. We don’t want to give away value just like that,” said al-Shaibani.

“Ideally we would like to list here but we also have the option of a secondary listing on the London Stock Exchange, which is very strategic for us because we are the largest shareholders.”

Sourced from Travel Weekly



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