Flynas to launch 30% IPO on Tadawul amid Saudi aviation push

Saudi Arabia’s low-cost carrier Flynas is set to launch an initial public offering on the Tadawul stock exchange, offering a 30% stake as part of the kingdom’s broader aviation sector expansion.

The IPO will include 51.25 million shares, with 17.42 million new shares making up 10.2% of the total offering. Flynas will become the first airline listed on Tadawul and the first in the Gulf to go public in nearly 20 years.

Backed by billionaire Prince Alwaleed bin Talal, the airline announced that the bookbuilding period will run from May 12 to 18, with retail subscriptions opening on May 28 and closing on June 1. CEO Bander Al Mohanna said:

This is a strategic step that accelerates our growth ambitions and cements Flynas as the region’s leading low-cost carrier by 2030

The company is targeting growth across underserved international markets while maintaining strong performance on key domestic routes. Religious tourism remains a core focus, with Flynas aiming to meet rising demand for Hajj and Umrah travel to Makkah and Madinah.

Founded in 2007 as Nas Air, Flynas currently serves 72 destinations and reported a net profit of SAR 434 million ($115.7 million) in 2023. Revenues rose 17% year-on-year to SAR 7.5 billion, with passenger numbers reaching 10.9 million in the first nine months of the year, up from 7.9 million in the same period of 2023.

The all-Airbus operator, with a current fleet of 61 aircraft, is undergoing a major expansion. Flynas has ordered 280 aircraft worth SAR 161 billion and expects to receive over 100 new jets, including 30 A330neo wide-bodies, bringing its total fleet to 160+ aircraft by 2030.

The IPO aligns with Saudi Arabia’s $100 billion aviation strategy, which aims to welcome 330 million passengers annually, connect to 250 destinations, and develop cargo capacity of 4.5 million tonnes by 2030. The plan also includes the launch of Riyadh Air, a new national carrier set to begin operations this year.

Flynas’ listing comes amid a surge in Saudi IPO activity, with the kingdom leading the Gulf in 2023, recording 15 Tadawul IPOs and 27 Nomu listings, raising over $4.3 billion, according to PwC.