Flynas, the low-cost airline from Saudi Arabia, experienced a swift sale of its shares when it opened its initial public offering (IPO) on the Riyadh stock exchange. Within just minutes, all $1.1 billion worth of shares were sold, marking a significant milestone for the airline.
Supported by billionaire investor Alwaleed bin Talal, Flynas is offering a total of 51.2 million shares at prices ranging from approximately $20 to $21 each. This offering represents roughly 30% of the airline’s total share capital. Flynas identifies itself as Saudi Arabia’s only independent airline and is utilizing this IPO to bolster its fleet and extend its operations across its four main bases, according to a company statement.
The decision to go public comes amidst global market instability, partly due to U.S. tariffs and continuous declines in oil prices, which pose potential challenges for economic growth within Saudi Arabia. Additionally, there are media speculations that Abu Dhabi’s Etihad Airways is also considering launching its IPO.
This IPO marks a noteworthy development, as it positions Flynas as the first airline in the Gulf Arab region to go public in the last two decades. The offering encompasses newly issued shares, alongside shares from National Flight Services Co. and Alwaleed’s Kingdom Holding Co.
In the past year, Flynas reported a profit of $116 million and a revenue of $2 billion. Other Saudi companies are also eyeing public offerings, with firms like Specialized Medical, which operates within the healthcare sector, the packaging company United Carton Industries, and tech company iMENA Group, all planning IPOs of their own.