Flynas' US$1.1 billion Saudi Arabia IPO sells out in minutes
[DUBAI] Saudi Arabia's Flynas had demand for all the shares on offer in its US$1.1 billion initial public offering minutes after books opened, indicating continued demand for listings in the kingdom despite market volatility.
The low-cost carrier and some of its shareholders are selling a 30 per cent stake – 51.26 million shares – at 76 (S$26.50) to 80 riyals apiece, according to a statement on Monday (May 12). Institutional investors fully covered the order book throughout the price range, according to terms of the deal seen by Bloomberg News.
Bookbuilding for institutional investors runs until May 18. The top end of the price range implies a valuation of 13.7 billion riyals (S$4.77 billion).
The IPO on the Riyadh exchange includes both newly issued shares and stock sold by existing investors – billionaire Prince Alwaleed Talal's Kingdom Holding and National Flight Services. Proceeds will be used to expand Flynas' fleet and establish new operational hubs.
The deal would make Flynas the first Gulf airline to go public in almost two decades, and would precede an expected US$1 billion listing of Abu Dhabi flag carrier Etihad Airways.
Several Middle Eastern firms are moving forward with IPO plans despite market volatility sparked by US trade policies. While the region is seen as relatively insulated from tariffs, prolonged low oil prices pose a key risk to growth.
A hospital operator and a packaging manufacturer have also launched new share sales in Riyadh in recent weeks, and a tech firm is set to follow suit. In Dubai, a conglomerate owned by the emirate's ruler is planning to list a real estate investment trust amid the city's property boom.
Flynas reported revenue of US$2 billion and net profit of US$116 million in 2024. BLOOMBERG
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