Saudi Arabia’s Flynas Approved for 30% IPO on Saudi Exchange

Flynas (XY, Riyadh) has received regulatory approval to proceed with its planned initial public offering (IPO), allowing the low-cost carrier to list 30% of its shares on the Saudi Exchange. The Kingdom’s Capital Market Authority (CMA) confirmed the approval, stating that 51,255,568 shares will be offered. A detailed prospectus will be released ahead of the subscription period, outlining financials, management, and company activities.

The IPO is expected to raise approximately SAR7.5 billion (USD2 billion), according to Kingdom Holding Company Chairman Al Waleed bin Talal Al Saud. Kingdom Holding, which owns 37% of Flynas, is the airline’s largest shareholder. The Public Investment Fund (PIF) of Saudi Arabia holds a 17% stake and is reportedly looking to increase its share.

Flynas generated SAR6.3 billion (USD1.68 billion) in revenue in 2023, reflecting 32% year-on-year growth. The airline, formerly known as nasair, has not yet released its 2024 financial results.

In March, Flynas confirmed a significant aircraft order with Airbus, converting a memorandum of understanding into firm orders. The deal includes 15 A330-900Ns, 26 A321-200Ns, and 49 additional A320-200Ns, bringing its total A320-200N orders to 103. The carrier has also ordered 10 A321XLR aircraft.

Flynas currently operates a fleet of 63 aircraft, including four A320-200s, fifty-five A320-200Ns, and four A330-300s. The IPO and fleet expansion support Flynas’ growth strategy as it aligns with Saudi Arabia’s broader aviation and tourism development goals.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com