Flynas finalizes IPO terms, targeting $1.1 billion in funding
Saudi low-cost carrier Flynas has set the final price for its Initial Public Offering (IPO) at 80 Saudi riyals (approximately $21.33 USD) per share, hitting the upper limit of its previously announced price range. The offering will allow the airline to raise 4.1 billion riyals (around $1.1 billion) through the sale of 51.26 million shares, representing 30% of its share capital post-IPO.
Saudi Fransi Capital, the lead manager for the offering, announced the completion of the book-building process for institutional investors, which was 99.8 times oversubscribed. Following its listing on the Saudi Stock Exchange (Tadāwul), Flynas is expected to reach a market capitalization of approximately 13.7 billion riyals (around $3.65 billion).
Of the shares offered, 10.2% are newly issued, while the remainder comes from existing shareholders, including Kingdom Holding Company, chaired by Prince Alwaleed Bin Talal, and National Flight Services Co. Proceeds from the new shares will be used to expand Flynas’ fleet and grow its route network, in line with Saudi Arabia’s Vision 2030 strategy.
The retail portion of the IPO is scheduled to run from May 28 to June 1, with 10.25 million shares allocated to individual investors.
Founded in 2007 as Nas Air, Flynas currently operates a fleet of 71 Airbus aircraft, including A320ceo, A320neo, and A330 models. The airline serves over 139 routes across more than 70 domestic and international destinations in 30 countries, operating more than 1,500 weekly flights. Since launching operations, Flynas has transported over 80 million passengers and reported a net profit of 434 million riyals ($115.7 million USD) in 2024.
Flynas has a firm order for 153 additional aircraft and aims to expand its fleet to more than 160 planes by 2030.
This IPO marks the first airline listing in the Gulf region in nearly two decades, following the listings of UAE’s Air Arabia and Kuwait’s Jazeera Airways. Flynas’ move comes amid growing investor interest in the Middle East aviation sector, fueled by strong post-pandemic demand and government initiatives to boost air connectivity as an economic driver.
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Other regional airlines, including Etihad Airways, are reportedly considering similar market moves this year.
The institutional offering was advised and underwritten by Morgan Stanley Saudi Arabia and Goldman Sachs Saudi Arabia, with ANB Capital, Al Rajhi Capital, Emirates NBD Capital KSA, and Citigroup KSA acting as joint bookrunners.
Flynas’ growth strategy aligns with Saudi Vision 2030, which aims to position the Kingdom as a global logistics and aviation hub. Goals include doubling annual passenger capacity to 330 million and connecting to more than 250 destinations by 2030. Flynas, named Best Low-Cost Airline in the Middle East by Skytrax, plays a key role in this strategy, including its involvement in the "Makkah Route" initiative to streamline pilgrim travel.
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