SHARJAH, 23 January 2007 — Air Arabia, the Sharjah-based budget airline, will become the first airline in the Gulf region to go public to finance.
Sheikh Abdullah ibn Mohammad Al-Thani, chairman of Air Arabia Airline, confirmed that it 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.
SHUAA Capital has been appointed as the financial advisor, lead manager and bookrunner for the IPO.
Air Arabia was established in February 2003 by an Amiri decree issued by Dr. Sheikh Sultan ibn Mohamed Al-Qassimi, ruler of Sharjah and member of the Supreme Council of the United Arab Emirates. The company began operations in October of the same year. “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,” said Sheikh Abdullah.
“In just over three years since launch, Air Arabia has established itself as one of the region’s great success stories. 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,” he said.
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. It has a fleet of nine Airbus A320 aircraft.
Adel Ali, chief executive officer of Air Arabia, said “the decision to go public was prompted by our desire to increase our equity capital to support our ambitious plans for future growth. We are also keen for our customers, staff and stakeholders to share in the success of Air Arabia through this IPO.” He added that “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.”
