flynas IPO Covered During Opening of Bookbuilding Process

Saudi Arabia-based flynas, one of the leading low-cost carriers (LCC) in the Middle East and North Africa (MENA) region, has announced the price range for its Initial Public Offering (IPO) as well as the commencement of the institutional book building period for participating parties, on Monday.

The company is the first airline to be listed on the Saudi Arabia’s Stock Exchange (Tadawul). The price range for the IPO has been set between $20.26 and $21.33 per share, implying a market capitalisation of the company at listing ranging between $3.5 billion and $3.6 billion.

The institutional book building subscription period, will close at 3 pm (Saudi Arabia time) on 18 May 2025. 

According to a Bloomberg report, the IPO was fully covered within minutes of opening the bookbuilding process, signalling strong investor appetite for Saudi equities even as global markets wobbled.

Opportunity for Investors

Bander Almohanna, CEO and Managing Director of flynas said that the airline intends to offer its shares to the public through an IPO, a strategic step that will accelerate the execution of their growth ambitions and solidify the company’s position as the leading low-cost carrier for short- and medium-haul flights across the MENA region by 2030.

This IPO offers investors the opportunity to participate in the growth journey of a high-value airline operating within one of the world’s fastest-growing aviation markets, Saudi Arabia and the GCC. It also highlights the remarkable transformation flynas has undergone since its founding in 2010, he noted.

“As the only independent airline in Saudi Arabia and the leading low-cost carrier in the region, we are uniquely positioned to benefit from the strong demand driven by the Kingdom’s aviation and tourism strategies, as well as the continued expansion of passenger traffic across the GCC and MENA markets. We remain focused on strengthening our market share on key domestic routes while strategically expanding into underserved international markets,” he said.

It may be recalled that the Capital Market Authority (CMA) has approved the company’s application for registering its share capital and the Offering of 51.25 million ordinary shares by way of the sale of 33.82 million existing ordinary shares by the company’s existing shareholders as well as the company’s treasury shares, which amount to 8,320,237 ordinary shares.

The selling shareholders are National Flight Services Company LLC, Kingdom Holding Company SJSC, Nasser Ibrahim Rashid Al Rashid, Mawarid Investment Company, Hamza Bahi Adeen Alsayed Al Kholi, Saudi General Investment Trading and Services Company, Salman Mohammed Khalid bin Hethlain, Yousef Abdulsattar Qassem Al Maimani (Selling Shareholders) and the issuance and sale of 17,426,893 new Ordinary Shares (the “New Shares”).

Collectively, the new shares and the sale shares represent the “Offer Shares” and the offering price will be determined at the end of a book-building process.