flynas Secures US$109 Billion In Bids For Saudi IPO
Priced at the top of its range, the deal signals strong investor confidence ahead of the retail tranche.
Saudi budget airliner flynas has drawn orders worth SAR 410 billion (US$109 billion) for its initial public offering (IPO), pricing the SAR 4.1 billion ($1.1 billion) deal at SAR 80 ($21.33) per share—the top end of the marketed range.
The pricing gives the low-cost carrier a market capitalization of SAR 13.7 billion ($3.65 billion).
The institutional tranche was oversubscribed nearly 100 times, reflecting strong demand from both local and international investors. Retail subscription for 10.3 million shares opens on May 28 and closes on June 1. Final allocations will be announced on June 3, with refunds set to begin on June 5.
The Public Investment Fund (PIF)-backed airline is offering 51.3 million shares, representing 30 percent of its share capital, for listing on the Saudi exchange Tadawul after securing approval from the market regulator in April.
Read More: flynas Unveils Expansion Plan in UAE
The IPO includes a mix of newly issued shares and stock sold by existing shareholders, including Prince Alwaleed bin Talal’s Kingdom Holding Co. and National Flight Services Co. The proceeds are intended to fund fleet expansion and the establishment of new operational hubs.
flynas’ offering marks the first airline IPO in the region in nearly two decades, following listings by Air Arabia in the UAE and Kuwait’s Jazeera Airways.
Goldman Sachs Saudi Arabia, BSF Capital, and Morgan Stanley Saudi Arabia are acting as joint financial advisors and underwriters, with BSF Capital also serving as lead manager. The bookrunners on the deal include Emirates NBD Capital KSA, Goldman Sachs Saudi Arabia, Al Rajhi Capital, BSF Capital, Citigroup Saudi Arabia, NAB Capital, and Morgan Stanley Saudi Arabia.
Image courtesy Creative Commons.
