CMA Okays flynas to List Its Shares on Tadawul

In a major move to change the landscape of Saudi Arabia’s aviation sector, the Capital Market Authority (CMA) has approved a request from Flynas, the Kingdom’s first low cost carrier, to list 30% of its shares on the Saudi Exchange Tadawul.

The carrier will offer 51,255,568 shares of its capital, the CMA said and added that a prospectus will be published within sufficient time prior to the start of the subscription period. The prospectus is set to include financial statements as well as information on management and activities.

The low-cost carrier recorded revenue of $1.68 billion for 2023, marking y-o-y growth of 32% and is yet to announce its financial results for the FY2024 and it will be raising much-needed capital for future expansion.

Formerly known as nasair, flynas’ biggest shareholder is Saudi Arabia’s conglomerate Kingdom Holding Company, which holds 37% share, while the country’s sovereign wealth fund – Public Investment Fund – holds 17%, which it is planning to increase. Kingdom Holding Company is owned by billionaire investor Al Waleed bin Talal Al Saud, a member of the royal family.

According to Al Waleed, flynas will be looking to raise around $2 billion from the Initial Public Offering (IPO), which was initially planned last year.

New Orders

The Airbus’ order book has confirmed that flynas had ordered 15 A330-900Ns, 26 A321-200Ns, and 49 additional A320-200Ns, to make a total of 103 of the latter type on order. Besides, the airline has placed orders for 10 A321-200NY(XLR).

The carrier currently operates a fleet of 63 in-house aircraft, including four A320-200s, 55 A320-200Ns, and four A330-300s. It operates 1,500 flights a week with an all-Airbus fleet, connecting more than 70 domestic and international destinations.

According to Travel and Tour World, the CMA’s approval marks a turning point for Saudi Arabia’s aviation industry and a landmark moment that signals the growing maturity of the Kingdom’s stock market, which is rapidly attracting global investors.

The airline has been eyeing new routes within the Middle East and North Africa, as well as more international destinations and the IPO will also help the company modernise its fleet, which could lead to improved customer experiences and cost savings.

For Saudi Arabia, the IPO represents more than just an investment opportunity and shows that the Kingdom’s economy is shifting away from oil dependency and embracing the opportunities presented by the private sector.

It may be recalled that the airline’s Chief Executive Bander Al Mohanna confirmed last year that they have hired Goldman Sachs Group, Morgan Stanley and Saudi Fransi Capital for the listing.