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Flynas announces Tadawul IPO: Budget carrier Flynas Company is taking a 30% stake to Tadawul’s main market, according to a prospectus (pdf). The long-anticipated IPO issuance will see the sale of newly issued shares and existing ones.
The plans: Some 51.26 mn ordinary shares will be up for grabs in the offering open to institutional investors, with a 20% clawback good for some 10.5 mn shares for retail investors provided there is sufficient demand.
Books open soon: The airline is set to announce the price range by 12 May, in tandem with opening the orderbook for institutional investors which will run through 18 May. Retail investors subscriptions would be open from 18 May to 1 June, with final allocation planned for 3 June. No date was given for when the shares would be finally listed on Tadawul for trading.
Where will the money go? Proceeds from 17.43 mn newly issued shares will go to the company for expanding its fleet and network, as well as other general corporate purposes. Meanwhile, proceeds from selling 33.83 mn existing shares will go to selling shareholders and partially fund the employee incentive program. Offering expenses — estimated at SAR 100 mn — will be deducted from the proceeds.
Post-IPO structure: Flynas’ three substantial shareholders — National Flight Services Company, Kingdom Holding Company, and Nasser Ibrahim Rashid Al Rashid — will retain majority ownership, holding a combined 62.84% stake post-offering, down from 84.91%. Shares of substantial shareholders will be subject to a six-month lock-up period from the first day of trading.
ICYMI- The company received approval from the Kingdom’s Capital Market Authority (CMA) inMarch to proceed with the IPO. The airline had initially planned to make its market debut last year, having tapped Goldman Sachs, Morgan Stanley, and Saudi Fransi Capital for the offering in late 2023.
A big moment for regional aviation: Flynas is set to be the first airline in the region to go public in almost two decades, and the third regional airline to ever go public after UAE’s Air Arabia and Kuwait’s Jazeera Airways IPOs in the 2000s.
About Flynas: Established in 2010 and converted to a joint-stock company in 2017, the Riyadh-based company is the Kingdom's first budget carrier and the largest independent airline in the Kingdom by revenue and passengers. The company operates over 1.5k weekly flights, servicing 139 routes connecting 30 countries. It also boasts a fleet of 61 jets — mainly Airbus A320neo — and has significant fleet expansion plans, including firm orders for 195 narrow-body and 15 wide-body Airbus aircraft, according to the prospectus. Flynas reported a net income of SAR 492.6 mn for the first nine months of 2024, while revenue reached SAR 5.9 bn.
ADVISORS- 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, ANBCapitall, and Morgan Stanley Saudi Arabia. Receiving agents include BSF Capital, Al Rajhi Capital, SNB Capital, and Riyad Capital, among others.
