{"id":86775,"date":"2025-06-04T00:00:00","date_gmt":"2025-06-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/06\/04\/flynas-retail-offering-wraps-with-3-5x-oversubscription\/"},"modified":"2025-06-04T00:00:00","modified_gmt":"2025-06-04T00:00:00","slug":"flynas-retail-offering-wraps-with-3-5x-oversubscription","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/06\/04\/flynas-retail-offering-wraps-with-3-5x-oversubscription\/","title":{"rendered":"flynas\u2019 retail offering wraps with 3.5x oversubscription"},"content":{"rendered":"

<\/strong>Flynas saw the retail tranche of its SAR 4.1 bn IPO 3.5x covered<\/strong>, according to a statement<\/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

REFRESHER- <\/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 institutional tranche of the IPO \u2014 in which the PIF-backed airline is taking a 30% stake to Tadawul \u2014 was 100x oversubscribed. <\/p>\n

Demand drivers<\/strong>: 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\u2019s GDP this year<\/a>, and the Tourism Ministry is targeting 150 mn tourist trips<\/a> by 2030, up from around 104 mn in 2023.<\/p>\n

ICYMI- Flynas\u2019 net income inched down 1% y-o-y d to SAR 148 mn in 1Q<\/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\u2026<\/strong>: This is 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 \u2014 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. Flynas\u2019 raise alone, surpasses total IPO proceeds in the UAE this year, where only one company \u2014 Alpha Data \u2014 has gone public, raising AED 600 mn<\/a> on the ADX. <\/p>\n

Jet delivery delays could pose a headache: <\/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 \u2014 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. <\/p>\n

Receiving agents<\/strong> include BSF Capital, Al Rajhi Capital, SNB Capital, and Riyad Capital, among others.<\/p>\n

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