flynas Announces Final Offer Price of Its IPO

flynas one of the leading low-cost carriers (LCC) in the Middle East and North Africa (MENA) region, has announced the successful completion of the institutional book-building period for participating parties and the determination of the final offer price for its initial public offering (IPO), which has been at $21.33 per share.

The price range for the Offering had previously been set at $20.26 to $21.33.

The institutional book-building process was highly successful, generating an order book of $109.4 billion from a diverse mix of local and international investors and was 100 times oversubscribed, the company said. 

Bander Almohanna, CEO & Managing Director of flynas, said that there was an exceptional demand from leading local and international institutional investors, indicating a strong testament to their confidence in their strategic vision, the capabilities of the executive and management team, and their belief in the future growth trajectory.

This remarkable milestone not only reflects the valued position flynas holds, but also underscores the growing confidence in the strength of the Saudi economy and the attractiveness of the Kingdom’s capital market, as well as the strong momentum in the aviation sector under Vision 2030, he said.

IPO Highlights

The total size of the IPO is $ 1.1 billion, implying a market capitalisation of the company at listing of $ 3.6 billion. The Offer Shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the IPO and listing formalities with the Capital Market Authority (CMA) and the Saudi Exchange, with the date to be announced on Tadawul at a later stage. 

The IPO comprises an offer of 51,255,568 ordinary shares, which consist of 33,828,675 Sale Shares (of which, 8,320,237 Ordinary Shares are the company’s Treasury Shares), and 17,426,893 New Shares.

The Sale Shares shall represent 19.8% and the New Shares shall represent 10.2% of the company’s total share capital upon completion of the Offering, totalling 30% of the company’s post Offering, flynas said.

The participating parties, that took part in the institutional book-building process, have initially been allocated 100% of the Offer Shares. In the event Individual Investors subscribe for the Offer Shares allocated to them, the Joint-Financial Advisors, in coordination with the Company, shall have the right to reduce the number of Offer Shares allocated to Participating Parties to 80% of the offering sharings.

The proceeds from the 8,320,237 treasury shares and the 3,953,763 Sale Shares will be used to finance the company’s incentive program, and the remaining net proceeds from the Sale Shares (i.e., excluding 3,953,763 shares) will be distributed to the Selling Shareholders on a pro-rata basis, in accordance with their respective ownership of the Sale Shares.

The net proceeds totalling 34%, resulting from the New Shares will be paid to and used by the company to finance its growth strategy and for general corporate purposes.