Saudi Arabia's low-cost airline Flynas plans to launch an initial public offering on the Tadawul stock exchange with a 30 per cent stake sale, amid the kingdom's ambitions to grow its aviation sector.
The company will offer 51.25 million shares to investors, including 17.42 million new shares amounting to 10.2 per cent of the total offer, becoming the first airline to be listed on the Tadawul, it said on Monday. It will also be the first airline to be listed in the Gulf in nearly two decades.
Flynas, which has billionaire businessman Prince Alwaleed bin Talal as one of its main backers, said the bookbuilding period will run from May 12 to May 18. The retail subscription will open on May 28 and close on June 1.
The IPO is a “strategic step that will accelerate the execution of our growth ambitions and solidify our position as the leading low-cost carrier for short- and medium-haul flights across the Middle East and North Africa by 2030", said Bander Al Mohanna, chief executive and managing director of Flynas.
“We remain focused on strengthening our market share on key domestic routes while strategically expanding into underserved international markets,” he said.
“The Hajj and Umrah segment is a cornerstone of our strategy, and we are well-positioned to serve the growing demand for religious travel to the holy cities of Makkah and Madinah.”
Flynas, which began operations as Nas Air in 2007, currently serves 72 domestic and international destinations.
The company reported a net profit of 434 million Saudi riyals ($115.7 million) last year, up from 401 million in 2023. Its revenue last year also rose by about 17 per cent to 7.5 billion riyals.
The airline carried 10.9 million passengers in the first nine months of last year, up from 7.9 million during the same period in 2023.
The all-Airbus operator, which has a fleet of 61 aircraft, said in February that it expects to receive more than 100 Airbus aircraft over the next five years, with its fleet anticipated to reach more than 160 aircraft by the end of 2030. These form part of its orders for 280 aircraft worth over 161 billion riyals. It will include the addition of 30 A330 neo wide-body aircraft.
“Our ambitious fleet expansion – including the addition of wide-body aircraft – will further support our growth across all key segments,” Mr Al Mohanna said.
The move to list the low-cost airline comes amid Saudi Arabia's broader aviation sector strategy that seeks to unlock $100 billion in private and government investment across the kingdom’s airports, airlines and aviation support services.
As part of the strategy, the kingdom aims to welcome 330 million passengers, ensure connectivity with 250 destinations and develop cargo capacity of 4.5 million tonnes by 2030. Under that plan, it also established the new carrier Riyadh Air, which will begin operations this year.
The listing of Flynas also comes amid a surge in IPOs in Saudi Arabia and growing investor demand. The kingdom led the Gulf region in terms of volumes with 15 Tadawul IPOs and 27 Nomu listings last year, according to PwC. The companies raised more than $4.3 billion from the listings.
