flynas, Saudi Arabia’s low-cost airline, has received regulatory approval to list 30% of its shares on the Saudi Exchange. The green light from the Capital Market Authority (CMA) allows the carrier to proceed with its long-awaited initial public offering (IPO), potentially raising SAR7.5 billion ($2 billion).
Regulatory Approval and Prospectus Details
The CMA announced the approval, stating that flynas will offer 51,255,568 shares for public subscription. A prospectus, detailing the airline’s financials, management structure, and operational activities, will be made available before the subscription period begins. Investors will be closely watching for insights into the airline’s profitability and future growth strategy.
flynas, formerly known as nasair, has not yet commented on the development. However, market analysts believe the IPO will attract significant interest, given Saudi Arabia’s growing aviation sector and increasing demand for budget travel.
Strong Financial Performance and Growth Plans
The airline reported revenue of SAR6.3 billion ($1.68 billion) for 2023, reflecting an impressive 32% year-on-year growth. While the financials for 2024 are yet to be disclosed, the company’s trajectory suggests continued expansion.
Saudi conglomerate Kingdom Holding Company, which owns a 37% stake in flynas, remains a key backer. The Public Investment Fund (PIF) holds 17% and is reportedly interested in increasing its stake.
Prince Al Waleed bin Talal Al Saud, who owns Kingdom Holding, has stated that the IPO aims to raise around SAR7.5 billion ($2 billion), reinforcing confidence in the airline’s valuation and future prospects.
Fleet Expansion and Airbus Orders
flynas is aggressively expanding its fleet to support its growing operations. The airline recently confirmed orders for:
- 15 Airbus A330-900Ns
- 26 Airbus A321-200Ns
- 49 additional Airbus A320-200Ns (bringing its total orders for the type to 103)
- 10 Airbus A321-200NY(XLR)s
According to ch-aviation data, flynas currently operates 63 aircraft, comprising four A320-200s, 55 A320-200Ns, and four A330-300s. These additions will significantly boost the airline’s capacity and route network.
Saudi Arabia’s Expanding Aviation Market
flynas’ IPO comes at a time when Saudi Arabia is investing heavily in its aviation sector. The government’s Vision 2030 initiative aims to transform the country into a global aviation hub, with a target of handling 330 million passengers annually by the end of the decade.
The airline industry has seen rapid growth, driven by rising domestic and international travel demand. Saudi Arabia’s flagship carrier, Saudia, and its new entrant, Riyadh Air, are also ramping up operations, making the sector highly competitive.
For flynas, the IPO represents an opportunity to strengthen its market position and secure additional funding for expansion. Investors will be watching closely as the subscription period approaches, eager to see how the airline capitalizes on the booming aviation landscape.
