Flynas saw the retail tranche of its SAR 4.1 bn IPO 3.5x covered, according to a statement(pdf). 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’s main market IPO after it wrapped up final allocations.

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

Demand drivers: Investor appetite was buoyed by a positive macro narrative, and a solid financial and operational pitch. For example, the travel and tourism sector is expected to contribute 10% or higher to the Kingdom’s GDP this year, and the Tourism Ministry is targeting 150 mn tourist trips by 2030, up from around 104 mn in 2023.

ICYMI- Flynas’ net income inched down 1% y-o-y d to SAR 148 mn in 1Q, reflecting a baseline effect driven by a non-recurring gain in the previous year, Al Arabiya reports. Revenues rose 6% y-o-y to SAR 1.8 bn. The company also recorded the lowest complaint rate among Saudi carriers in April.

Third-ever airline IPO in the GCC…: This is the region’s 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’s Etihad Airways to market.

…and the biggest Saudi IPO since Aramco: The SAR 4.1 bn offering is the Kingdom’s largest so far this year, outpacing Umm Al Qura for Development (SAR 2 bn), and Almoosa Health (SAR 1.7 bn). It also ranks as the highest-grossing Saudi IPO since Aramco’s stellar USD 29.4 bn debut in 2019. Flynas’ raise alone, surpasses total IPO proceeds in the UAE this year, where only one company — Alpha Data — has gone public, raising AED 600 mn on the ADX.

Jet delivery delays could pose a headache: Flynas may still be facing some hurdles from ongoing aircraft supply chain disruptions, as Airbus, its primary supplier, has warned airlines of delivery delays 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 in a transaction valued at USD 30 bn through 2030 — potentially exposing it to the industry-wide bottlenecks.

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, NAB Capital, and Morgan Stanley Saudi Arabia.

Receiving agents include BSF Capital, Al Rajhi Capital, SNB Capital, and Riyad Capital, among others.

ALSO IN THE PIPELINE–

  • Saudi Global Ports (SGP) reportedly tapped banks in December, including Goldman Sachs and HSBC, to arrange an upcoming IPO;
  • Saudi e-commerce platform Salla raised USD 130 mn in a pre-IPO investment round led by Bahrain-based Investcorp and others. Salla is yet to announce a timeline;
  • Israel’s Ashdod Port Company plans to float up to 49%, and has published a tender to select an IPO adviser in January;
  • The Egyptian gov’t is planning on selling a stake in the military-owned National Roads Companyin 2026, as part of the government’s privatization program;
  • Etihad Airways could be gearing up for a listing on ADX. A final decision on the move is yet to be made by shareholders, but the airline is ready for it anyway, CEO Antonoaldo Neves told Reuters late last April;
  • Malaysia’s largest port operator MMC Port Holdings has hired local banks CIMB and Maybank to work on its planned initial public offering (IPO) that is projected to reel in over USD 1.34 bn. The IPO — possibly Malaysia’s largest in over a decade — is expected to move forward between 2H 2025 and 2026;
  • E-commerce and B2B firm Silq Group — the result of a recent merger between Saudi e-commerce platform Sary and Bangladesh’s ShopUp — is eying an IPO in 2027;
  • Adnoc is reportedly weighing an IPO for its recently set up USD 80 bn low-carbon and chemicals arm XRG on an international exchange. Any future floatation will take effect in five-odd years, Reuters reported in May, citing an unnamed source.
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