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UAE: Etihad denies fake ads offering IPO shares on social media

The country’s federal financial regulatory agency also warned residents against dealing with bogus investment entities

Published: Thu 1 Aug 2024, 6:45 PM

Updated: Fri 2 Aug 2024, 8:13 AM

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UAE’s national carrier, Etihad Airways, has rubbished claims made by “several social media posts falsely suggesting that the airline is undertaking a public share listing on the Dubai Financial Market.”

In a statement sent to Khaleej Times on Thursday, the Abu Dhabi-based carrier said: “These (fake) posts appear to misleadingly advertise a mechanism to invest and improperly use the airline’s branding, despite having no affiliation with Etihad.”

“The airline has clarified in the strongest terms that any conjecture regarding a potential share listing (IPO/ initial public offering) is entirely speculative,” Etihad underscored, adding: “These deceptive posts have been reported to the relevant authorities in the UAE and social media providers.”

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Also on Thursday, the Securities and Commodities Authority (SCA) – the country’s federal financial regulatory agency – also warned residents against dealing with bogus investment entities.

SCA noted fake ads have been circulating on social media platforms, encouraging people to subscribe in Etihad Airways shares. “Do not deal with these fictitious advertisements,” the SCA and Etihad Airways told investors in an advisory.

SCA reminded residents to rely only on official sources for information and to verify an entity's identity first before signing any agreements or making any financial transactions.

IPO listing is not ‘uncommon’

Meanwhile, back in March, Etihad Airways CEO Antonoaldo Neves hinted at IPO listing, noting “airlines going public isn’t 'uncommon'".

“The airline industry is a capital-intensive business,” Neves told reporters, explaining carriers can benefit if they gain “access to capital and public markets through an IPO”.

His statement that time came amid speculations of Etihad’s possible listing following a stellar performance in 2023, with a positive outlook projected for 2024.

Last year, Etihad posted a double-digit or 11 per cent total revenue growth, reaching Dh20.3 billion; operating result of Dh1.4 billion; net profit of Dh525 million, and passenger revenue hitting Dh16.7 billion.

In the first quarter of 2024, Etihad Airways registered a profit after tax of Dh526 million, a big leap of more than 791 per cent as compared to Dh59 million in first three months of 2023. Total revenue increased by Dh987 million on the back of an increase in network capacity and passenger numbers.

In June, Etihad delivered on its plans to expand its network launching eight additional locations, including Bali, Jaipur and Al Qassim; and seasonal destinations Nice, Antalya, Mykonos, Santorini and Malaga.

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