Flynas sells all shares in record IPO on Riyadh stock exchange
- Flynas successfully sold all $1.1 billion in shares from its initial public offering almost immediately.
- The airline aims to use the raised capital for fleet expansion and enhancing operations at its bases.
- This IPO makes Flynas the first airline in the Gulf Arab region to go public in the last two decades.
In a remarkable development for Saudi Arabia's aviation industry, the low-cost carrier Flynas successfully completed its initial public offering, selling all available shares almost instantly on the Riyadh stock exchange. This significant financial event took place recently, drawing attention within the region. Flynas, recognized as the only independent airline in the kingdom, was backed by billionaire Alwaleed bin Talal, indicating strong investor confidence in the company's future. The airline offered 51.2 million shares priced between $20 and $21 each, amounting to a total of $1.1 billion and representing approximately 30% of its total equity. The decision to go public comes amid global market uncertainty caused by ongoing U.S. tariffs and a slump in oil prices, both of which pose challenges to economic growth within the country. Despite these challenges, Flynas aims to utilize the capital raised from the IPO to expand its fleet and enhance operations across its four existing bases. The airline recorded a profit of $116 million and revenues of $2 billion last year, suggesting a positive growth trajectory and reinforcing the rationale behind its IPO. This IPO marks a significant milestone, as it will make Flynas the first airline in the Gulf Arab region to list publicly in approximately twenty years. The successful issuance of shares is pivotal for Flynas, which is in the midst of growth plans, including fleet expansion. Moreover, the market is also watching other potential IPOs from regional companies, including plans from Abu Dhabi's Etihad Airways. The performance and investor interest in Flynas could set a precedent for these upcoming public offerings in the Gulf region. Furthermore, the IPO reflects broader trends in the Saudi economic landscape as various sectors, from medical to technology, are exploring public listings to strengthen financial capabilities and drive future growth. Companies such as Specialized Medical, United Carton Industries, and iMENA Group are also pursuing their own IPO plans, indicating a shift towards increasing the presence of listed firms in Saudi Arabia's market and enhancing its investment attractiveness.