UAE-based budget airline Air Arabia says that it wants to raise $700 million when it’s shares go on sale to the public next week on the Dubai Financial Market.
The carrier, which is owned by the government of Sharjah, a neighbouring emirate to Dubai, UAE, plans to sell 2.57 billion shares for 1 dirham (35 cents) each, at its IPO on March 18.
ArabianBusiness.com originally broke the news exclusively on 1
st
February that Air Arabia would become the first airline in the Gulf to go public.
A week later, the company announced record 2006 financial results when net profit grew by 222% to Dhs101 million (US$27.5m) from revenue of Dhs749.16 million (US$203m).
The $700 million sale would be for 55% of the company valuing the company at $1.27 billion – a price to earnings ratio of 46.
The Sharjah government will retain the remaining 45%.
The carrier plans to use the funds to finance the expansion of its fleet of aircraft to 34 by 2016 from nine now, according to a company official.
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