Saudi Budget Airline flynas Seeks $1.1 Billion in IPO
Saudi Arabian budget airline flynas is seeking to raise up to SAR4.1 billion riyals ($1.1 billion) from an initial public offering (IPO) in Riyadh, it announced on Monday. This development marks a significant step for the airline, which is backed by billionaire Prince Al Waleed Bin Talal and has been growing its operations in recent years.
A Sneak Peek at flynas’ Latest-Generation Seats: Read-Comfort for Less
The airline is selling a 30% stake to investors in the first IPO by a Gulf airline in almost 20 years. The price range has been set at between SAR76 and SAR80 per share, implying a market capitalization of up to $3.6 billion. This listing would be only the third by a Gulf airline after Air Arabia from the United Arab Emirates and Jazeera Airways from Kuwait.
Tourism: A Key Pillar of Saudi Arabia’s Domestic Economic Agenda
Saudi Arabia has targeted tourism as a key pillar of its domestic economic agenda to reduce reliance on oil revenue. By listing flynas, the country is seeking to attract more investment in the sector and create new job opportunities for its citizens. The airline’s growth strategy will be financed by 34% of the net proceeds from the IPO.
Institutional Book-Building Subscription Period: May 18 Deadline
The institutional book-building subscription period started on Monday and will close on May 18, according to flynas. During this time, investors can subscribe for shares at the predetermined price range. The airline’s growth strategy and general corporate purposes will be funded by part of the remaining proceeds from the IPO.
Selling Shareholders: Kingdom Holding Company
The selling shareholders include Kingdom Holding Company, the investment company founded by Prince Al Waleed. As part of the deal, the remaining proceeds will be distributed to these shareholders. This move is expected to boost investor confidence and pave the way for flynas’ expansion plans.
Conclusion
The IPO of flynas marks an important milestone in the airline’s growth journey and paves the way for its future expansion plans. With a 30% stake being sold to investors, the airline is seeking to raise up to SAR4.1 billion riyals ($1.1 billion). The listing will be only the third by a Gulf airline after Air Arabia and Jazeera Airways, highlighting Saudi Arabia’s growing interest in tourism as a key driver of its domestic economic agenda.