Saudi airline flynas ambitiously prices IPO after $109b in orders from investors

Riyadh: Saudi Arabia’s budget airline flynas, backed by Prince Alwaleed bin Talal’s Kingdom Holding, has priced its initial public offering (IPO) at SAR80 per share — the top end of its indicative range — after attracting SAR409 billion ($109 billion) in institutional orders. That’s nearly 100 times oversubscribed.

The low-cost carrier priced its share sale at 80 riyals apiece, the top of the marketed range, implying a market capitalization of 13.7 billion riyals.
The institutional tranche was nearly 100 times oversubscribed on strong local and international demand, according to a statement on Wednesday. With retail orders still to come, the final book is expected to be even larger.

The IPO will raise SAR4.1 billion ($1.1 billion) and values the airline at SAR13.7 billion ($3.6 billion) ahead of its planned listing on Tadawul in June, the Saudi stock exchange.

flynas is the first Gulf airline to go public in almost two decades, marking a major milestone for the region’s aviation sector. The IPO includes 51.26 million shares — or 30% of the airline's share capital — a mix of new shares and stock offered by Kingdom Holding and National Flight Services Co.

Flynas’ planned listing on the Riyadh stock exchange will comprise a mix of new shares and stock offered by existing investors including Prince Alwaleed bin Talal’s Kingdom Holding Co. and National Flight Services Co. The proceeds are earmarked for fleet expansion and the launch of additional operational hubs.

Despite market volatility, flynas is one of the few regional firms pushing ahead with IPOs, alongside names like United Carton Industries and Specialized Medical Co. In the UAE, Dubai Holding is eyeing a real estate listing, and Etihad Airways may also follow with a potential $1 billion offer.

A rebound in global stock prices is luring firms looking to go public off the sidelines after the worst of the tariff-induced market volatility appears to be over. In the Middle East, which has been a hub for new share sales over the past few years, a handful of companies have launched IPOs in recent weeks and garnered strong demand.

In 2024, flynas posted $2 billion in revenue and a net profit of $116 million, reflecting robust demand for budget travel and expanding routes. Proceeds from the IPO will help fund the airline’s growth plans, support employee incentives, and return value to existing shareholders.

Of the funds raised:

The deal is led by BSF Capital, Goldman Sachs Saudi Arabia, and Morgan Stanley Saudi Arabia. Other regional financial powerhouses — including Al Rajhi Capital, ANB Capital, Citigroup, and Emirates NBD Capital — are joint bookrunners.

flynas’s successful bookbuilding round and strong market interest underline growing investor confidence in Saudi Arabia’s Vision 2030 strategy, and in the broader strength of its capital markets.