Flynas takes off on the Saudi Exchange

• Biggest IPO this year
• Raising $1.1bn
• Listing in challenging market

Budget airline Flynas will begin trading on the main market of the Saudi Exchange, concluding the biggest initial public offering in the region this year.

The airline is issuing 30 percent of its share capital for $1.1 billion. It will launch on the exchange with a final offer price of SAR80 ($21.33), implying a market capitalisation of SAR13.6 billion.

It will be the first listing on the Saudi Exchange since conflict escalated between Israel and Iran on Friday and the second since global markets were rocked by President Trump’s tariff announcements in April. 

“This is not the best time to list, given disruption in air travel within the region due to ongoing conflict,” Nishit Lakhotia, head of research at Bahrain’s Sico Bank, said in a note on Monday.

• Flight detours and high oil prices raise costs for Gulf airlines
• Oversubscribed Flynas IPO offers hope for other Saudi listings
• The quiet rise of Middle East low-cost carriers

The Flynas listing follows the disappointing performance of United Carton Industries Co., which saw its share price fall on the first day of trading last month. It is currently trading 28 percent below its IPO price.

The institutional tranche of the Flynas IPO, which ended on May 21, was oversubscribed by almost 100 times. Orders exceeding SAR409 billion were received from local and international investors.

For the retail tranche it attracted 666,069 investors and was oversubscribed by 350 percent.

In its most recent earnings release, the company reported a 0.7 percent drop in its first quarter net income to SAR148 million. That was despite a 6 percent increase in revenue to SAR1.8 billion, year-on-year.

The airline operates 1,500 flights a week with an all-Airbus fleet, connecting more than 70 domestic and international destinations, according to its website.