Saudi Airline Flynas IPO Sets Price at Top End of Range, Raises $1.1 Billion for Fleet Expansion and New Hubs

Flynas Co., Saudi Arabia's low-cost airline, has set the price for its initial public offering at the top end of the range, raising $1.1 billion. The company will sell a 30% stake, with institutional investors fully subscribing the offer minutes after books opened. The IPO will comprise a mix of new shares and stock offered by existing stakeholders, with proceeds earmarked for fleet expansion and operational hub launches. This comes amid a rebound in global stock prices and strong demand for IPOs in the Middle East.

Flynas Co., Saudi Arabia's low-cost airline, has set the price for its initial public offering (IPO) at the upper end of its range, raising $1.1 billion. The company will sell a 30% stake, with institutional investors fully subscribing the offer minutes after the books opened on May 12, 2025. The IPO will comprise a mix of new shares and stock offered by existing stakeholders, with proceeds earmarked for fleet expansion and operational hub launches. This comes amid a rebound in global stock prices and strong demand for IPOs in the Middle East [1].

The IPO price range was set between 76 and 80 Saudi riyals (equivalent to $20.30 to $21.33), with the company opting for the higher end of the range. Flynas aims to raise approximately 4.1 billion Saudi riyals ($1.1 billion) through the IPO. The proceeds from the sale of the new shares will be used to finance the airline's fleet expansion and network growth, while the proceeds from the sale of existing shares will be returned to existing shareholders. This IPO is the first by a Gulf airline in nearly two decades and implies a market capitalization upon listing of 13 to 13.7 billion Saudi riyals ($3.47 to $3.65 billion) [1].

Flynas, which began operations in 2007 as nasair (Saudi Arabia), currently operates a fleet of 71 aircraft to 74 airports in 34 countries. According to data from ch-aviation, the fleet consists of four A320-200s, 56 A320-200Ns, and four A330-300s, with an additional 153 aircraft on order. Its route network covers Saudi Arabia, the Middle East, South and Central Asia, Europe, and North Africa. In 2024, Flynas generated a net profit of 434 million Saudi riyals ($115.7 million) [1].

The company's CEO, Bander Almohanna, described the IPO as a "strategic step that will accelerate the realization of our growth ambitions and consolidate our position as the leading low-cost airline for short and medium-haul flights throughout the Middle East and North Africa by 2030." Flynas plans to strengthen its market share on key domestic routes while strategically expanding into underserved international markets. The company's ambitious fleet expansion, including the addition of wide-body aircraft, will further support its growth across all key segments [1].

Flynas' IPO comes ahead of an expected $1 billion IPO by Etihad Airways (EY, Abu Dhabi International) in the coming months, underscoring the dynamism of the aviation market in the Gulf region.

References:
[1] https://aviation.direct/en/Lightning-start-on-the-stock-market%3A-high-demand-for-FlyNAS-shares-at-IPO-in-Riyadh