Flynas, Saudi Arabia’s pioneering low-cost airline, is preparing for its highly anticipated Initial Public Offering (IPO) on the Tadawul stock exchange, marking a major milestone for the country’s aviation sector. The move is set to solidify Flynas’ position as the first airline to be listed on the exchange, and the first in the Gulf region in nearly two decades. The airline plans to offer 51.25 million shares in total, with 17.42 million of those being new shares, representing 10.2% of the entire offering. This significant step comes as part of Saudi Arabia’s broader plan to expand its aviation industry and enhance its position as a regional and global hub for air travel.
The IPO bookbuilding period is scheduled to begin on May 12 and will run until May 18, followed by the retail subscription phase, which opens on May 28 and closes on June 1. Flynas is poised to be the latest high-profile company to take advantage of the booming IPO market in Saudi Arabia, which is seeing strong demand from investors.
Flynas Aims for Growth in MENA and Beyond
Flynas’ listing represents more than just a financial move; it is a strategic step designed to accelerate the airline’s growth ambitions. Bander Al Mohanna, CEO and Managing Director of Flynas, stated that the IPO would help the airline solidify its position as the leading low-cost carrier for short- and medium-haul flights across the Middle East and North Africa by 2030. Al Mohanna emphasized that the company remains focused on expanding its market share in key domestic routes while also targeting underserved international markets.
The airline’s growth plans are not limited to commercial routes. Flynas sees significant opportunity in the Hajj and Umrah travel segment, which is expected to experience robust demand as millions of pilgrims travel to Makkah and Madinah each year. “The Hajj and Umrah segment is a cornerstone of our strategy,” Al Mohanna noted, further positioning the airline to capture this lucrative market.
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Financial Strength and Fleet Expansion
Flynas has demonstrated strong financial performance in recent years, with the company reporting a net profit of 434 million Saudi riyals ($115.7 million) for 2024, marking a year-on-year increase from 401 million riyals in 2023. The airline’s revenue also grew by 17%, reaching 7.5 billion riyals. Furthermore, Flynas reported carrying 10.9 million passengers in the first nine months of 2024, up from 7.9 million in the same period the previous year, showcasing its growing popularity.
Flynas operates an all-Airbus fleet, consisting of 61 aircraft, and has ambitious plans for expansion. The airline has placed an order for over 100 Airbus planes, with its fleet expected to exceed 160 by 2030. This includes the addition of 30 A330 neo wide-body aircraft, which will enhance its ability to serve both short and long-haul routes.
“Our ambitious fleet expansion – including the addition of wide-body aircraft – will further support our growth across all key segments,” Al Mohanna said, reinforcing the airline’s commitment to increasing capacity and expanding its reach.
Saudi Arabia’s Broader Aviation Strategy
The Flynas IPO is part of Saudi Arabia’s broader efforts to develop its aviation sector, which aims to attract $100 billion in investments across airports, airlines, and aviation support services. The kingdom’s vision is to welcome 330 million passengers by 2030, ensure connectivity with 250 global destinations, and build a cargo capacity of 4.5 million tonnes. The introduction of Flynas to the stock market aligns with this plan, positioning the airline to contribute significantly to these ambitious goals.
As part of this strategy, Saudi Arabia has also launched Riyadh Air, a new national carrier set to begin operations later this year, further enhancing the kingdom’s competitiveness in the global aviation landscape.
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A Thriving IPO Market in Saudi Arabia
The IPO surge in Saudi Arabia is fueling investor enthusiasm. In 2024, Saudi Arabia led the Gulf region with 15 IPOs on the Tadawul stock exchange and 27 Nomu listings, raising more than $4.3 billion in the process, according to PwC. Flynas’ IPO will contribute to this momentum, attracting investors eager to tap into the kingdom’s thriving market.
As Flynas takes its first steps toward becoming a publicly listed company, the airline is not only expanding its own reach but also helping to propel Saudi Arabia’s aviation sector into a new era of growth and opportunity. The success of this IPO could set the tone for future listings and solidify the kingdom’s position as a rising star in the global aviation industry.
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