- Investment firm Onex Corp. has officially announced its intention to take WestJet public through an Initial Public Offering (IPO).
- The anticipated timeline for the airline’s public listing is approximately two years.
- This major move follows Onex’s recent and highly profitable sale of a 25% stake in the carrier to three other airlines.
- An IPO is being positioned as a “natural next step” to fuel the airline’s significant capital requirements for future growth.
Onex Corp. Sets Sights on WestJet IPO Within Two Years
In a significant development for the aviation industry, private equity firm Onex Corp. has revealed its plans to return WestJet to the public markets. Following a period of private ownership that has yielded substantial returns, Onex is now targeting an Initial Public Offering (IPO) for the Canadian carrier within the next couple of years.
From Private Equity to Public Offering: The Path Ahead
The announcement signals a new chapter for WestJet, which was taken private by Onex in a landmark deal. The strategic plan was confirmed by Tawfiq Popatia, a senior managing director at Onex who heads Onex Partners, the firm’s flagship private equity unit. The move is seen by industry insiders as a logical and timely progression for the airline.
In a recent interview, Popatia laid out the firm’s expectations clearly. “An IPO would be a natural next step because airlines are very large, capital-hungry enterprises,” he stated. “I think that would be a natural thing to expect in a couple of years.” This forward-looking statement has captured the attention of investors and industry analysts, who are now closely watching for WestJet’s next move.
Strategic Stake Sale Paves the Way
The decision to pursue an IPO comes on the heels of another major financial maneuver by Onex. The firm recently completed the sale of a 25% stake in WestJet to a consortium of three other airlines. This transaction allowed Onex to secure a significant profit from its investment, de-risking its position while retaining majority control of the carrier. The successful sale has not only generated a large return but has also demonstrated the high value and potential that other major players see in WestJet, effectively setting the stage for a strong public debut.
Why an IPO is a ‘Natural Next Step’
Popatia’s comments underscore the fundamental economics of the airline business. Airlines require immense and continuous capital investment to maintain and expand their fleets, modernize technology, and compete on a global scale. An IPO provides access to public capital markets, offering a powerful vehicle to raise the necessary funds for these ambitious, long-term projects. By going public, WestJet can fuel its growth, enhance its operational capabilities, and solidify its competitive position in the ever-evolving aviation landscape.
Image Referance: https://www.bloomberg.com/news/articles/2025-10-23/onex-expects-westjet-ipo-in-two-years-after-scoring-big-gains