Saudi Arabia’s flynas Sets Sights on IPO in 2024, Engages Top Financial Firms

Saudi Arabian low-cost carrier flynas is gearing up for a potential initial public offering (IPO) on the Saudi Exchange in Riyadh, targeted for 2024. In a move to solidify its financial strategy, flynas has brought on board notable financial services companies, including Goldman Sachs Group, Morgan Stanley, and Saudi Fransi Capital, as reported by Bloomberg News.

The airline, partially owned by Prince Alwaleed Bin Talal’s Kingdom Holding Company, has been exploring the possibility of an IPO since as early as 2008. The interest in going public saw significant progress in 2016 and 2017, with Morgan Stanley being enlisted to advise on the share sale. Subsequently, in early 2018, Citigroup and NCB Capital were also recruited to facilitate the planned offering.

A key stakeholder in flynas is Saudi Arabia’s Public Investment Fund, holding a 17% share. There are reports suggesting that the fund is considering increasing its investment in the airline.

In June 2023, flynas reaffirmed its commitment to expanding its fleet by confirming thirty A320-200N options. This commitment brought its total order for the Airbus neo narrowbodies to 120 units. According to ch-aviation fleets advanced data, flynas’ current fleet comprises forty-six A320-200Ns, eight A320-200s, and four A330-300s, with an additional sixty-one A320-200Ns and ten A321-200NY(XLR)s on order.

The decision to pursue an IPO comes at a time when flynas is experiencing significant fleet expansion, positioning itself as a key player in the region’s competitive aviation market. The IPO is anticipated to further strengthen flynas’ financial base and support its strategic growth initiatives.