Saudi budget airline Flynas is looking to raise as much as SAR4.1 billion ($1.1 billion) in an initial public offering (IPO) that started this week to finance expansion.
The IPO price range was set at between SAR76 and SAR80 per share, implying a market capitalisation of as much as $3.65 billion.
The airline, which is partly owned by billionaire Prince Alwaleed Bin Talal, is selling 51.3 million shares, or 30 percent of its stock, for listing the main Saudi Exchange market, after receiving approval from the Saudi market regulator last month.
The listing will be the third in the region by a regional airline after the UAE’s Air Arabia and Kuwait’s Jazeera Airways.
The institutional book-building subscription period started on Monday and will close on May 18.
The airline will use one-third of the proceeds to finance its growth strategy and for general corporate purposes, the company said.
The remainder will be distributed to the shareholders, which include Saudi Arabia-listed Kingdom Holding Company, chaired by Prince Alwaleed.
The listing date was not given and is pending regulatory approvals.
Flynas reported revenue of nearly SAR6 billion for the first nine months of 2024, an increase of 20 percent year on year.
Net profit jumped almost 50 percent over the same period to SAR493 million.
Kingdom Holding has a 37 percent share in Flynas, formerly known as Nas Air. Saudi Arabia’s Public Investment Fund holds a 17 percent stake.
Global stock markets, including in the Gulf, plunged in the wake of President Trump’s April 2 tariff announcement, throwing the timeline for IPO plans in the region into flux, with analysts saying that the turmoil would delay share sales.
The main Saudi index fell by almost 7 percent at the start of April but, like markets around the world, has since bounced back. So far this year, three companies in Saudi Arabia have sold shares to the public for listing on the main exchange, raising just over $1 billion between them.
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