Flynas to announce its IPO price range today

Good morning, ladies and gents. We have a meaty issue for you today, ahead of Trump’s gulf tour tomorrow which will see him visit the Kingdom, Qatar and UAE. Agreements in investment, oil, defense, AI infrastructure, and nuclear power, are all in the cards, and we have the rundown of what to expect in the news well, below

Also in today’s issue: We unpack Aramco’s results in the first quarter, the latest industrial production data from Gastat, as well as updates from Specialized Medical Company’s Tadawul IPO, Saudi National Bank’s AT1 sukuk issuance, and an avalanche of first quarter earnings. Let’s dive in.

HAPPENING TODAY-

The four-day Riyadh International Industry Week launches today at the Riyadh International Convention & Exhibition Center. The Middle East’s largest industrial gathering will bring together over 16k industry leaders, featuring four trade shows covering plastics & petrochemicals, print & packaging, smart logistics, and smart manufacturing, alongside an expert-led summit, fostering networking, partnerships, and innovation.

The Saudi Giga Projects Summit is live at The Venue in Riyadh, offering in-depth updates on the Kingdom’s giga developments. The three-day Meed-organized event will cover construction progress, sector-wide prospects, and emerging technologies, offering a spotlight on key projects. More than 40 speakers, 150 company representatives, and 600 attendees will explore trends in supply chains, advanced manufacturing, and demand outlooks through a series of conferences, workshops, meetings, and closed receptions.

The 2025 Saudi Food Show kicks off today at the Riyadh Front Exhibition and Conference Centre, running through Wednesday, 14 May. Sponsored by the Industry Minister, the event brings together leading global food and beverage brands to showcase their latest products.

WEATHER- It just isn’t letting up, with more forecasts of thunderstorms, hail, and strong winds in Asir, Al-Baha, and Makkah, while thunderclouds hang over Madinah, Riyadh, Jazan, and Najran. Dust storms are expected in Qassim, Hail, Tabuk, Al-Jawf, the Northern Borders, and the Eastern Region.

Riyadh is expected to see a high of 42°C and a low of 28°C today, while Jeddah’s mercury will go as high as 33°C and as low as 27°C. Makkah will see a 45°C high and 28°C low.

PSAs-

#1- Businesses subject to excise tax must submit their March and April tax returns by 25 May through the Zakat, Tax, and Customs Authority (Zatca) website, according to a statement. Missing the deadline will apply a 5% late penalty on the unpaid tax for every 30 days of delay. Excise tax is imposed on products associated with health risks, including soft and energy drinks, and tobacco products.

#2- Employers and support workers have been given a six-month grace period to rectify the status of workers previously reported as absent, the Human Resources Ministry said in a statement. The initiative, processed through the Musaned platform, enables service transfers to new employers via automated procedures and excludes workers who became absent after the announcement.

IPO WATCH-

Budget carrier Flynas is due to announce its IPO indicative price range today, kicking off institutional bookbuilding through to Sunday, 18 May. The PIF-backed firm is taking a 30% stake to Tadawul’s main market in a hybrid offering of new and existing shares, with proceeds set to be split between funding fleet expansion, and partially cashing out selling shareholders.

Flynas is poised to become the region’s first airline to IPO in nearly two decades, and only the third carrier to list after Air Arabia and Jazeera Airways went public in the early-2000s. The low-cost airline, which secured regulatory approval last month, is now on track to beat Abu Dhabi’s Etihad Airways to market, after shelving plans for a 2018 listing.

ALSO HAPPENING TODAY- United Carton Industries’s two-day retail subscription window opens today, offering individual investors up to 20% of the 12 mn on offer at SAR 50 apiece. The packaging manufacturer is floating a 30% stake in a SAR 600 mn secondary offering.

DATA POINTS-

#1- The Kingdom’s current account balance fell y-o-y to a deficit of SAR 27.8 bn in 4Q 2024, down from a surplus of SAR 11.5 bn in the same quarter of the previous year, the report reads. However, the deficit narrowed slightly on a quarterly basis, down from a deficit of SAR 32.5 bn in the previous quarter.

Oil exports are dropping in tandem with a rise in non-oil exports: Oil exports are estimated to hit some SAR 195.9 bn during 4Q 2024, down 0.6% from the previous quarter, and down 13.3% on a y-o-y basis. Meanwhile, non-oil exports are projected to come in at SAR 80.4 bn during 4Q, up 2% on a quarterly basis, and by 16.9% y-o-y.

#2- The National Housing Company (NHC) sold over 16k housing units worth nearly SAR 15 bn during the first four months of 2025, a 101% increase from the same period last year, CEO Mohammad Albuty told Al Arabiya.

On recent real estate reforms, Al-Batty noted that lifting the land freeze north of Riyadh, along with plans to build 10k-40k housing units each year at prices below SAR 1.5k per sqm, will significantly increase housing supply. He added that amendments to the white land tax system will help mobilize idle land and redirect capital toward high-value sectors.

#3- Record public bus passengers in 1Q 2025 came at 23 mn across 15 cities, a 34% q-o-q growth, according to a post on X from the Transport General Authority (TGA). Riyadh buses carried over 15 mn passengers followed by Makkah (3 mn passengers) and Madinah (1.3 mn passengers).

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THE BIG STORY ABROAD-

Cooldown is the key word today in the global press, with some of the biggest armed (and trade) conflicts inching closer towards a resolution.

The White House is saying the two-day talks in Switzerland yielded a trade “deal” with China, with additional details to be announced today. Chinese officials aresaying the two sides reached an “important consensus” in Geneva, and are set to hold an economic dialogue forum.

Ukrainian President Volodymyr Zelenskyy said he’s hoping to meet Vladimir Putin personally in Turkey on Thursday, following a televised statement by the Russian President that saw him call for the first direct talks between the two countries since early 2022 in Istanbul. The statement came after EU officials have joined Ukraine in pressuring for a 30-day ceasefire.

CLOSER TO HOME- Hamas announced yesterday it will release the last living US national held in Gaza, Edan Alexander, as part of efforts to secure a ceasefire, with sources expecting the release within 48 hours. Trump hailed the step on Truth Social as a necessary step to “end this brutal conflict.”