{"id":97692,"date":"2025-06-04T00:00:00","date_gmt":"2025-06-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/06\/04\/flynas-retail-offering-3-5x-covered-set-to-be-largest-ipo-since-aramco\/"},"modified":"2025-06-04T00:00:00","modified_gmt":"2025-06-04T00:00:00","slug":"flynas-retail-offering-3-5x-covered-set-to-be-largest-ipo-since-aramco","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/06\/04\/flynas-retail-offering-3-5x-covered-set-to-be-largest-ipo-since-aramco\/","title":{"rendered":"Flynas\u2019 retail offering 3.5x covered, set to be largest IPO since Aramco"},"content":{"rendered":"

<\/strong>Flynas saw the <\/strong>retail tranche of its SAR 4.1 bn IPO 3.5x covered<\/strong>, according to a statement<\/a><\/a>(pdf)<\/a>. Individual investors booked 10.3 mn, or 20%, of the total shares on offer, lining up at least 10 pieces each. The books are now closed on the budget air carrier\u2019s main market IPO after it wrapped up final allocations.<\/p>\n

ICYMI-<\/strong> Flynas priced its IPO at SAR 80 a piece<\/a>, the top of the range it was guiding on, after its institutional offering saw overwhelming demand. The larger tranche of the IPO \u2014 in which the PIF-backed airline is taking a 30% stake to Tadawul \u2014 was 100x oversubscribed. <\/p>\n

Investor appetite is buoyed by a positive macro narrative and a solid financial and <\/strong>operational pitch. <\/strong>The travel and tourism sector is expected to contribute 10% or higher to GDP this year<\/a>. The Tourism Ministry is targeting 150 mn tourist trips<\/a> by 2030, up from around 104 mn trips in 2023.<\/p>\n

ALSO- Flynas\u2019 net income inched down 1% y-o-y to SAR 148 mn in 1Q 2025<\/strong>, reflecting a baseline effect driven by a non-recurring gain in the previous year, Al Arabiya<\/a> reports. Revenues rose 6% y-o-y to SAR 1.8 bn. The company also recorded the lowest complaint rate<\/a> among Saudi carriers in April.<\/p>\n

Third ever airline IPO in the GCC<\/strong>: This is going to be the region\u2019s first IPO of a major airline since 2008 and only the third-ever carrier to list in the GCC after Air Arabia and Jazeera Airway, beating Abu Dhabi\u2019s Etihad Airways to market.<\/p>\n

\u2026and the biggest Saudi IPO since Aramco: <\/strong>The SAR 4.1 bn offering is the Kingdom\u2019s largest so far this year, outpacing Umm Al Qura for Development (SAR 2 bn)<\/a> and Almoosa Health (SAR 1.7 bn)<\/a>. It also ranks as the highest-grossing Saudi IPO since Aramco\u2019s stellar USD 29.4 bn debut in 2019.<\/p>\n

Aircraft delays could pose a problem for the airliner:<\/strong> Flynas may still be facing some hurdles from ongoing aircraft supply chain disruptions, as Airbus, its primary supplier, has warned airlines of delivery delays<\/a> up to three years due to shortages in engines and components. While Flynas has not reported any specific setbacks, it has over 160 aircraft on order<\/a> in a transaction valued at USD 30 bn through 2030, potentially exposing it to the industry-wide bottlenecks.<\/p>\n

ADVISORS- <\/strong>Goldman Sachs Saudi Arabia, BSF Capital, and Morgan Stanley Saudi Arabia are joint financial advisors and underwriters. BSF Capital is also serving as 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<\/strong> include BSF Capital, Al Rajhi Capital, SNB Capital, and Riyad Capital, among others.<\/p>\n

ALSO IN THE PIPELINE-<\/strong><\/p>\n