Saudi low-cost carrier flynas has revealed its intention to proceed with an initial public offering (IPO) and list its shares on the Main Market of the Saudi Exchange (Tadawul), following approval from the Capital Market Authority (CMA) on March 26.
The IPO will comprise 51.26 million ordinary shares, representing 30 percent of the companyās post-offering share capital. This includes 33.83 million existing shares to be sold by current shareholders, 8.32 million treasury shares, and 17.43 million newly issued shares.
Offering details and subscription timeline
The offering will be accessible to both institutional and individual investors, with the final share price to be determined through a book-building process. The subscription period for individual investors is set to begin on Wednesday, May 28, 2025, and will close on Sunday, June 1, 2025. Final allocation of shares is anticipated by Tuesday, June 3, with any refunds for excess subscription amounts to be processed by Thursday, June 5.
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Commenting on the announcement, Bander Almohanna, CEO and managing director of flynas, stated: “We are pleased to announce that flynas intends to offer its shares to the public through an initial public offering ā a strategic step that will accelerate the execution of our growth ambitions and solidify our position as the leading low-cost carrier for short- and medium-haul flights across the Middle East and North Africa by 2030.”
He added: “This IPO offers investors the opportunity to participate in the growth journey of a high-value airline operating within one of the worldās fastest-growing aviation markets ā the Kingdom of Saudi Arabia and the GCC. It also highlights the remarkable transformation flynas has undergone since its founding in 2010.”
Financial proceeds and future plans
According to the company, net proceeds from the new share issuance will be utilized to support flynas’ fleet expansion, extend its network, and fund general corporate activities. Proceeds from the sale of existing shares and treasury stock will be distributed among current shareholders.
Founded in 2010, flynas operates 72 destinations across 30 countries, boasting a fleet of 61 aircraft and firm orders for 195 narrow-body and 15 wide-body Airbus aircraft. The airline reported SAR7.56 billion in revenue in 2024, an EBITDA of SAR2.18 billion, and a net profit of SAR434 million.
“As the only independent airline in Saudi Arabia and the leading low-cost carrier in the region, we are uniquely positioned to benefit from the strong demand driven by the Kingdomās aviation and tourism strategies,” Almohanna remarked.
“We remain focused on strengthening our market share on key domestic routes while strategically expanding into underserved international markets.”
Commitment to religious travel and operational hubs
Almohanna further emphasized the company’s role in religious travel: “The Hajj and Umrah segment is a cornerstone of our strategy, and we are well-positioned to serve the growing demand for religious travel to the holy cities of Makkah and Madinah ā supported by our regional leadership and operational flexibility.”
Moreover, flynas operates from four strategic hubs: Riyadh, Jeddah, Dammam, and Madinah. In 2024, the airline carried 14.7 million passengers, up from 11.2 million in 2023, achieving an 86 percent seat occupancy rate and an 88 percent on-time performance.
Fleet expansion plans to meet rising demand
“Our ambitious fleet expansion ā including the addition of wide-body aircraft ā will further support our growth across all key segments,” Almohanna said.
“With an all-Airbus fleet and a robust order book, we are well prepared to meet rising travel demand within, from, and to the Kingdom.”
He concluded: “As we move toward becoming the first airline to be listed on the Saudi Stock Exchange, we are excited to welcome new shareholders to flynasā ambitious journey.”
Furthermore, the offering is being managed by BSF Capital as the lead manager, with Goldman Sachs Saudi Arabia, Morgan Stanley Saudi Arabia, Al Rajhi Capital, Citigroup Saudi Arabia, anb capital, and Emirates NBD Capital KSA serving as bookrunners.