Flynas’ $1.1 billion Saudi Arabia IPO sells out in minutes

Riyadh: Saudi Arabia’s Flynas had demand for all the shares on offer in its 4.1 billion riyals ($1.1 billion) initial public offering minutes after books opened, indicating continued demand for listings in the kingdom despite market volatility.

According to a statement Monday, the low-cost carrier and some of its shareholders are selling a 30 per cent stake — 51.26 million shares — at 76 to 80 riyals apiece. Institutional investors covered the order book throughout the price range, according to the deal terms seen by Bloomberg News.

Book building for institutional investors runs until May 18. The top end of the price range implies a valuation of 13.7 billion riyals.

The IPO on the Riyadh exchange includes newly issued shares and stock sold by existing investors — billionaire Prince Alwaleed bin Talal’s Kingdom Holding Co. and National Flight Services Co. Proceeds will be used to expand Flynas’ fleet and establish new operational hubs.

The deal would make Flynas the first Gulf airline to go public in almost two decades and would precede an expected $1 billion listing of Abu Dhabi flag carrier Etihad Airways PJSC.

Several Middle Eastern firms are moving forward with IPO plans despite market volatility sparked by US trade policies. While the region is seen as relatively insulated from tariffs, prolonged low oil prices pose a key risk to growth.

A hospital operator and a packaging manufacturer have also recently launched new share sales in Riyadh, and a tech firm is set to follow suit. In Dubai, a conglomerate owned by the emirate’s ruler is planning to list a real estate investment trust amid the city’s property boom.

Goldman Sachs Group Inc., Morgan Stanley and BSF Capital are joint global coordinators on Flynas’ share sale. Al Rajhi Capital, ANB Capital, Citigroup Inc. and Emirates NBD are joint bookrunners.

Flynas reported revenue of $2 billion and a net profit of $116 million in 2024.