Emirates IPO.....Would you Buy
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Emirates IPO.....Would you Buy
Emirates IPO...What was said, what is being said and what has not been said...would you buy?
Guess we can count out a bumper profit sharing year if funds are going to be channeled to an initial IPO offering...
Read the an Interview given to a USA Paper in Feb 2006 here which gave away some mixed smoke signals when Sheikh Ahmed Bin Saeed Al Maktoum was Interviewed.
Fast Fwd to October 30th 2007 Todays Local Khaleej Times business section
Read the Times Article Emirates set for $20bn flotation on Dubai market from October 29th 2007 here
Guess we can count out a bumper profit sharing year if funds are going to be channeled to an initial IPO offering...
Read the an Interview given to a USA Paper in Feb 2006 here which gave away some mixed smoke signals when Sheikh Ahmed Bin Saeed Al Maktoum was Interviewed.
What kind of information can you give us about this IPO and what do you consider its advantages and disadvantages?
We are not talking about an IPO for Emirates Airlines so what we have been hearing in the papers over the past year or so it is not a decision the government has taken. I am sure that in the near future something like this will happen and it will be positive. We have an excellent company if we take into account the last twenty years of profit. If Emirates goes public, it will be very interesting for investors to buy its shares.
We are not talking about an IPO for Emirates Airlines so what we have been hearing in the papers over the past year or so it is not a decision the government has taken. I am sure that in the near future something like this will happen and it will be positive. We have an excellent company if we take into account the last twenty years of profit. If Emirates goes public, it will be very interesting for investors to buy its shares.
Fast Fwd to October 30th 2007 Todays Local Khaleej Times business section
DUBAI — Emirates airline, the region's largest and one of the world's fastest growing carriers, is considering an initial public offering (IPO) that could value it at between $20 billion and $30 billion.
Shaikh Ahmed bin Saeed Al Maktoum, President Dubai Department of Civil Aviation and Chairman of Emirates Group, told The Times newspaper that an IPO is now part of the airline's strategy.
He said: "I think more and more Dubai companies will see this is important in the near future. The DP World IPO is a very positive thing. I think for sure Emirates will also, in the future, do something like that."
Later, the airline's president Tim Clark commented to Reuters: "Based on our multiples and profitability, (and) our Heathrow slots, I would say we should be valued at between $20 billion and $30 billion. $20 billion is a minimum." He also added that he had "no knowledge" of a decision by the Dubai government to sell shares.
In response to The Times report, the airline said in a statement: "We confirm that what our chairman has said to The Times is accurate and we have nothing further to add. Eventually, as expressed by our chairman during the interview, any decision for an IPO rests with our owners, the Government of Dubai."
Shaikh Ahmed bin Saeed Al Maktoum, President Dubai Department of Civil Aviation and Chairman of Emirates Group, told The Times newspaper that an IPO is now part of the airline's strategy.
He said: "I think more and more Dubai companies will see this is important in the near future. The DP World IPO is a very positive thing. I think for sure Emirates will also, in the future, do something like that."
Later, the airline's president Tim Clark commented to Reuters: "Based on our multiples and profitability, (and) our Heathrow slots, I would say we should be valued at between $20 billion and $30 billion. $20 billion is a minimum." He also added that he had "no knowledge" of a decision by the Dubai government to sell shares.
In response to The Times report, the airline said in a statement: "We confirm that what our chairman has said to The Times is accurate and we have nothing further to add. Eventually, as expressed by our chairman during the interview, any decision for an IPO rests with our owners, the Government of Dubai."
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Story has been gaining a lot more momentum worth reading is an article here How sustainable is Emirates Business Model?
Gulf news in part said yesterday
Gulf news in part said yesterday
Silencing critics
The mood music then is harmonious. An Emirates IPO would also silence its critics who accuse it of benefiting from government support. "With respect to The Times report, I think it's fair to say that this move [if it were to happen] might be considered an attempt to finally rebut the frequent allegations of some of Emirates' main competitors that the airline's success is basically the result of unfair subsidies," said Dr Andreas Knorr, a Germany-based aviation expert.
It sounds like a win-win situation for the company, and for Dubai. Moreover, it's a story that's gathering momentum.
The mood music then is harmonious. An Emirates IPO would also silence its critics who accuse it of benefiting from government support. "With respect to The Times report, I think it's fair to say that this move [if it were to happen] might be considered an attempt to finally rebut the frequent allegations of some of Emirates' main competitors that the airline's success is basically the result of unfair subsidies," said Dr Andreas Knorr, a Germany-based aviation expert.
It sounds like a win-win situation for the company, and for Dubai. Moreover, it's a story that's gathering momentum.
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Fair Bonus system...
Actually guys, if well implemented, it would be the fairest bonus system one could dream of.
On 'bonus day', you will get X amount of options for EK shares. These options can only be used after one year and before a certain time obviously (as is with options). There will be of course some conditions (like you still have to be employed by EK to exercise the option).
If EK has good profits and is growing, EK shares will go up and your options can be worth a lot of money. If not, well, your options will be worthless.
At least it would give us a very transparent way of our bonus, and not like it is nowadays that the Sheikh just gives us the minimum amount to keep us here..
Schemes like this are in force at companies like easyJet, and are working very well... Especially for expanding companies, a lot of money can be made through these set-ups.
Also, should you opt to exercise the option and keep the shares, you would be entitled to divident payouts as well.
MR8
On 'bonus day', you will get X amount of options for EK shares. These options can only be used after one year and before a certain time obviously (as is with options). There will be of course some conditions (like you still have to be employed by EK to exercise the option).
If EK has good profits and is growing, EK shares will go up and your options can be worth a lot of money. If not, well, your options will be worthless.
At least it would give us a very transparent way of our bonus, and not like it is nowadays that the Sheikh just gives us the minimum amount to keep us here..
Schemes like this are in force at companies like easyJet, and are working very well... Especially for expanding companies, a lot of money can be made through these set-ups.
Also, should you opt to exercise the option and keep the shares, you would be entitled to divident payouts as well.
MR8
