Latest news with #BanderAlMohanna
The National
07-05-2025
- Business
- The National
Flynas IPO: 'Exceptionally strong' interest from investors despite global market volatility, CEO says
Saudi Arabia's Flynas is receiving "exceptionally strong" interest from regional and global investors for its initial public offering, despite volatility in global markets, the airline's chief has said. Flynas said this week that it will list on the Tadawul stock exchange with a 30 per cent stake sale, offering 51.25 million shares to investors. The airline's growth strategy, the aviation sector's positive outlook in Saudi Arabia and the Gulf, and momentum in the kingdom's capital markets are driving investor confidence, according to Bander Al Mohanna, chief executive and managing director of Flynas. "Investor appetite has been exceptionally strong. We're very encouraged by the positive response from both regional and global investors," he told The National. "As the first airline to list on Tadawul, we offer a unique and compelling investment opportunity, underpinned by secular growth trends in travel, tourism, and aviation. Investors clearly see the long-term value in our differentiated model and ambitious expansion plans." Stock markets globally have been extremely volatile in recent weeks due to the prospects of a global trade war fuelled by US tariffs. "While global investor sentiment can be influenced by macroeconomic headwinds such as US tariffs, Flynas' core business is firmly rooted in the high-growth domestic and regional markets of Saudi Arabia and the GCC," Mr Al Mohanna said. "These markets are supported by long-term demand drivers - including religious tourism, population growth, and infrastructure investment - which position the company to remain resilient and attractive regardless of short-term external pressures." The budget carrier, which counts billionaire businessman Prince Alwaleed bin Talal among its main backers, will be the first airline to be listed in the Gulf in almost two decades. The region has a handful of publicly listed carriers, including the UAE's Air Arabia and Kuwait's Jazeera Airways. Abu Dhabi-based Etihad Airways has also said that it is working to become IPO-ready but the decision lies with its shareholders. Flynas provides potential investors with exposure to a "high-growth sector at the heart of Saudi Arabia's connectivity and tourism ambitions", Mr Al Mohanna said. "The offering comes amid growing momentum in the Saudi capital markets, driven by structural reforms, increased global investor engagement, and a broader push to diversify the economy." Saudi Arabia's strong macroeconomic fundamentals, its ongoing transformation under Vision 2030 and the "strategic role" of the aviation sector within its national agenda will drive investor interest, he added. Tourism is a major pillar in the Vision 2030 plan to reduce the economy's reliance on oil, with a target of hosting 150 million tourists a year by 2030. Airlines will benefit from the government's push into tourism, with Riyadh Air debuting by the end of 2025 and flag carrier Saudia growing its Jeddah operations to attract more pilgrims and visitors. The low-cost travel market is expected to grow from 49 per cent in 2023 to 60-70 per cent by 2030, so "there is an opportunity for us to continue growing with the market", Mr Al Mohanna said. Flynas competes with low-cost carrier flyadeal. Flynas will use the proceeds from the sale of new shares to expand its fleet with both narrow and wide-body aircraft, grow its route network, establish a new operations base, and for general corporate purposes, the airline executive said. Saudi Arabia's passenger numbers were up 8 per cent to 34.9 million between January and March, according to the General Authority of Civil Aviation. About 21 airlines entered the Saudi market over the past year, including China Eastern, Virgin Atlantic, Ita Airways, Eurowings and Air China. More than 20 new routes were established to destinations such as Rome, Hong Kong, and Beijing.
Arab News
06-05-2025
- Business
- Arab News
Saudi Arabia's revised 2024 capital investment rises to $355bn, surpassing target by 38%
Flynas to float 30% stake in Saudi IPO after record profit RIYADH: Saudi low-cost carrier flynas plans to float 30 percent of its share capital in an initial public offering on the Kingdom's main stock market, becoming the country's first airline to list on Tadawul. The IPO, approved by the Capital Market Authority, will involve 51.26 million shares, including both newly issued shares and those offered by existing shareholders. Book-building for institutional investors is set to begin on May 12, with retail subscriptions to follow at the end of the month, the company said in a release. Flynas will also become the first Gulf airline to go public in nearly two decades, reflecting renewed investor interest in the region's fast-growing aviation sector and ongoing market liberalization. The move comes amid a buoyant IPO environment in the Middle East and North Africa, where regional markets saw a surge in listings and capital-raising activity in early 2025. According to an EY report, 14 IPOs raised $2.4 billion in the first quarter — marking a 106 percent increase in proceeds compared to the same period in 2024. Bander Al-Mohanna, CEO and managing director of flynas, said: 'This strategic move will propel us toward becoming the leading low-cost carrier in the MENA region for short and medium-haul markets by 2030. Through this IPO, we are offering investors access to a unique and valuable asset in the rapidly growing KSA and GCC aviation sector.' The company said the retail subscriptions for flynas shares will run from May 28 to June 1, following institutional book-building. Share allocation and refunds are scheduled for early June, with trading expected to commence after formal listing procedures are complete. Flynas, which launched in 2007, holds a 23 percent share of Saudi Arabia's domestic aviation market and operates one of the youngest fleets in the region, with an average aircraft age of 3.2 years. The airline reported an on-time performance rate of 88 percent in 2024. The carrier plans to use proceeds from the IPO to expand its fleet — including a major order for 225 Airbus aircraft — enhance services for Hajj and Umrah travelers, and invest in cargo operations. 'With an all-Airbus fleet and a significant orderbook, we are poised to meet the increasing air travel demand within, to, and from the Kingdom, supported by our strategic bases in the Kingdom's busiest international airports,' said Al-Mohanna. The offering comes on the back of record financial results in 2024, with flynas reporting revenue of SR7.56 billion ($2.02 billion), a 19 percent year-on-year increase, while earnings before interest, taxes, depreciation, and amortization rose 31 percent to SR2.18 billion. Net profit reached SR434 million, up 8 percent from the previous year. The airline's operational efficiency and expanding network contributed to these results, with passenger numbers growing by 31 percent to 14.7 million in 2024. The airline is a key beneficiary of Saudi Arabia's Vision 2030, which aims to transform the Kingdom into a global aviation and tourism hub. Targets include 330 million passengers and 120 million visitors by 2030. 'As a leading pan-regional LCC, we are well-positioned to benefit from the robust demand driven by Saudi Arabia's aviation and tourism strategy, as well as the strong growth in passenger traffic across the GCC and MENA markets,' Al-Mohanna added.
Arab News
06-05-2025
- Business
- Arab News
Flynas to float 30% stake in Saudi IPO after record profit
RIYADH: Saudi low-cost carrier flynas plans to float 30 percent of its share capital in an initial public offering on the Kingdom's main stock market, becoming the country's first airline to list on Tadawul. The IPO, approved by the Capital Market Authority, will involve 51.26 million shares, including both newly issued shares and those offered by existing shareholders. Book-building for institutional investors is set to begin on May 12, with retail subscriptions to follow at the end of the month, the company said in a release. Flynas will also become the first Gulf airline to go public in nearly two decades, reflecting renewed investor interest in the region's fast-growing aviation sector and ongoing market liberalization. The move comes amid a buoyant IPO environment in the Middle East and North Africa, where regional markets saw a surge in listings and capital-raising activity in early 2025. According to an EY report, 14 IPOs raised $2.4 billion in the first quarter — marking a 106 percent increase in proceeds compared to the same period in 2024. Bander Al-Mohanna, CEO and managing director of flynas, said: 'This strategic move will propel us toward becoming the leading low-cost carrier in the MENA region for short and medium-haul markets by 2030. Through this IPO, we are offering investors access to a unique and valuable asset in the rapidly growing KSA and GCC aviation sector.' The company said the retail subscriptions for flynas shares will run from May 28 to June 1, following institutional book-building. Share allocation and refunds are scheduled for early June, with trading expected to commence after formal listing procedures are complete. Flynas, which launched in 2007, holds a 23 percent share of Saudi Arabia's domestic aviation market and operates one of the youngest fleets in the region, with an average aircraft age of 3.2 years. The airline reported an on-time performance rate of 88 percent in 2024. The carrier plans to use proceeds from the IPO to expand its fleet — including a major order for 225 Airbus aircraft — enhance services for Hajj and Umrah travelers, and invest in cargo operations. 'With an all-Airbus fleet and a significant orderbook, we are poised to meet the increasing air travel demand within, to, and from the Kingdom, supported by our strategic bases in the Kingdom's busiest international airports,' said Al-Mohanna. The offering comes on the back of record financial results in 2024, with flynas reporting revenue of SR7.56 billion ($2.02 billion), a 19 percent year-on-year increase, while earnings before interest, taxes, depreciation, and amortization rose 31 percent to SR2.18 billion. Net profit reached SR434 million, up 8 percent from the previous year. The airline's operational efficiency and expanding network contributed to these results, with passenger numbers growing by 31 percent to 14.7 million in 2024. The airline is a key beneficiary of Saudi Arabia's Vision 2030, which aims to transform the Kingdom into a global aviation and tourism hub. Targets include 330 million passengers and 120 million visitors by 2030. 'As a leading pan-regional LCC, we are well-positioned to benefit from the robust demand driven by Saudi Arabia's aviation and tourism strategy, as well as the strong growth in passenger traffic across the GCC and MENA markets,' Al-Mohanna added.
The National
06-05-2025
- Business
- The National
Flynas IPO: Saudi Arabian airline to list 30% of shares
Saudi Arabia's low-cost airline Flynas plans to launch an initial public offering on the Tadawul stock exchange with a 30 per cent stake sale, amid the kingdom's ambitions to grow its aviation sector. The company will offer 51.25 million shares to investors, including 17.42 million new shares amounting to 10.2 per cent of the total offer, becoming the first airline to be listed on the Tadawul, it said on Monday. It will also be the first airline to be listed in the Gulf in nearly two decades. Flynas, which has billionaire businessman Prince Alwaleed bin Talal as one of its main backers, said the bookbuilding period will run from May 12 to May 18. The retail subscription will open on May 28 and close on June 1. The IPO is 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", said Bander Al Mohanna, chief executive and managing director of Flynas. 'We remain focused on strengthening our market share on key domestic routes while strategically expanding into underserved international markets,' he said. '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.' Flynas, which began operations as Nas Air in 2007, currently serves 72 domestic and international destinations. The company reported a net profit of 434 million Saudi riyals ($115.7 million) last year, up from 401 million in 2023. Its revenue last year also rose by about 17 per cent to 7.5 billion riyals. The airline carried 10.9 million passengers in the first nine months of last year, up from 7.9 million during the same period in 2023. The all-Airbus operator, which has a fleet of 61 aircraft, said in February that it expects to receive more than 100 Airbus aircraft over the next five years, with its fleet anticipated to reach more than 160 aircraft by the end of 2030. These form part of its orders for 280 aircraft worth over 161 billion riyals. It will include the addition of 30 A330 neo wide-body aircraft. 'Our ambitious fleet expansion – including the addition of wide-body aircraft – will further support our growth across all key segments,' Mr Al Mohanna said. The move to list the low-cost airline comes amid Saudi Arabia's broader aviation sector strategy that seeks to unlock $100 billion in private and government investment across the kingdom's airports, airlines and aviation support services. As part of the strategy, the kingdom aims to welcome 330 million passengers, ensure connectivity with 250 destinations and develop cargo capacity of 4.5 million tonnes by 2030. Under that plan, it also established the new carrier Riyadh Air, which will begin operations this year. The listing of Flynas also comes amid a surge in IPOs in Saudi Arabia and growing investor demand. The kingdom led the Gulf region in terms of volumes with 15 Tadawul IPOs and 27 Nomu listings last year, according to PwC. The companies raised more than $4.3 billion from the listings.
