Flynas’ shares dipped 3.4% on Tadawul debut yesterday to close at SAR 77.30 apiece, according to market data. The stock slid 13% intraday, with trading briefly halted twice. The company’s share will still be subject to the usual Tadawul debut rules — a 30% price fluctuation cap and a static 10% band over the first three sessions, followed by a 10% daily circuit breaker onwards.

A rough landing: Flynas’ IPO marks the region’s first main market listing since the outbreak of the Israel-Iran conflict last week — a geopolitical shock that triggered a regional sell-off, denting investor sentiment. Aviation stocks were among the hardest hit due to widespread disruptions to commercial flight schedules.

Geopolitics weighed in: “Flynas valuations were at a premium to other regional airlines on the back of strong growth and the Saudi aviation narrative. However, despite the massive oversubscriptions and strong response to the IPO, the timing of the listing was far from optimal given the current geopolitical situation.” Nishit Lakhotia, head of research at SICO Bank, told Bloomberg.

ICYMI- The turbulence came despite a stellar USD 4.1 bn IPO, which wrapped up lastweek, marking the region’s first listing of a major airline since 2008 and the highest-grossing Saudi IPO since Aramco’s USD 29.4 bn debut in 2019. The institutional offering was 100x oversubscribed, booking SAR 409 bn in orders.

It’s not all doom and gloom: Flynas may still have enough tailwinds to ride out sustained geopolitical tension by tapping into steady demand from outbound tourism and religious pilgrimage flows, IPOX Schuster’s Lukas Muehlbauer told Bloomberg. The airline’s home-base advantage in Saudi Arabia, a top crude producer, could also help shield it from the kind of fuel price shocks hitting its global peers.

AND- Flynas gets to keep the crown: The company was named the best Middle Eastern low-cost carrier for the eighth year in a row, and ninth worldwide, according to the World’s Top 100 Low-Cost Airlines 2025 ranking by UK-based Skytrax. The rankings were announced at the Skytrax Awards held on the sidelines of the Paris Air Show.

The year in IPOs: Flynas breaks from a streak of strong market debuts on Tadawul YTD, with Entaj, Derayah Financial, Nice One, and Umm Al Qura for Development all increasing the maximum 30% on their first trading sessions, while Almoosa Health climbed 15% on its debut.

The only other outlier was United Carton Industries Company, which dipped 1.5% below its IPO price, as the broader Saudi market slowly turned into one of the worst performers globally in May. This marked a stark contrast to just a few months ago, when newly listed stocks routinely posted double-digit gains, outpacing regional peers.

ADVISORS- Goldman Sachs Saudi Arabia, BSF Capital, and Morgan Stanley Saudi Arabia were joint financial advisors and underwriters. BSF Capital also served as the lead manager. Bookrunners include Emirates NBD Capital KSA, Goldman Sachs Saudi Arabia, Al Rajhi Capital, BSF Capital, Citigroup Saudi Arabia, NAB Capital, and Morgan Stanley Saudi Arabia. Receiving agents included BSF Capital, Al Rajhi Capital, SNB Capital, and Riyad Capital, among others.

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