Emirates Airlines Plans $25 Billion IPO

Dubai, United Arab Emirates (AHN) - The Middle East's largest carrier, Emirates Airlines, is planning to launch a $25 billion (91 billion dirham) initial public offering. It is observing the performance and market response to the DP World IPO before making a final decision on the matter.

In terms of finances, Emirates does not need to raise additional funds. It enjoyed a $841.5 million (3.09 billion dirham) net profit for its previous fiscal year ending March 2007, from an income base of $8.12 billion (29.83 billion dirham).

It has $3 billion (11 billion dirham) cash to finance future expansion plans, but capital market analysts believe an Emirate IPO will generate a lot of interest.

Mohammad Yasin, managing director of Shuaa Capital, told the Gulf News, "It will be one of the most sought after IPOs and will be attractive to international institutional investors."

At the moment, Emirates expansion plans are focused on additional routes. It launched Monday a three weekly flights to Toronto, Canada and six weekly trips to Ahmedabad, India. Both new air legs are non-stop services.