Riyadh, Saudi Arabia – Flynas, a leading low-cost airline in the Middle East and North Africa, has announced the successful completion of its institutional book-building process, pricing its initial public offering (IPO) at SAR80 per share. The offering was oversubscribed by 100 times,reflecting strong investor confidence [[1]],[[2]],[[3]].

Unprecedented Demand Drives Pricing to Top End

The final offering price was set at SAR80 per share, the upper limit of the previously announced price range of SAR76 to SAR80. This decision followed the overwhelming success of the book-building process, which saw total requests exceeding SAR409 billion. The IPO attracted significant participation from both local and international investors, underscoring the attractiveness of Saudi arabia’s financial market.

CEO’s Viewpoint

Bandar bin Abdul Rahman Al-Muhanna, CEO and Managing Director of Flynas, expressed his pride in the exceptional investor turnout. He stated:

We are proud of the exceptional turnout by senior investors from local and international institutions, which is a strong evidence of their confidence in our strategic vision and the efficiency of our executive and administrative team, and their belief in our future growth process. This prominent achievement reflects not only the prestigious position occupied by flynas, but also the increasing confidence in the strength of the Saudi economy and the attractiveness of the financial market in the Kingdom, and the momentum witnessed by the aviation sector Hard in the framework of the Kingdom’s 2030 vision.
Bandar bin Abdul Rahman Al-Muhanna, CEO and Managing Director of Flynas

Key Features of the Offering

• Final Offering Price: SAR80 per share.
• Total offering Amount: SAR4.1 billion ($1.1 billion), resulting in a market value of SAR13.7 billion ($3.6 billion) upon listing.
• Listing and Trading: Shares will be listed and trading will commence on the main market of Saudi Arabia’s trading platform after completing all necessary regulatory procedures. The exact date will be announced on the Saudi Tadawul website.
• Shares Offered: The IPO includes 51,255,568 ordinary shares, comprising:
  • 33,828,675 existing ordinary shares, including 8,320,237 treasury shares.
  • 17,426,893 new shares.
• Capital depiction: The shares offered represent 30% of the company’s capital after the offering, with existing shares accounting for 19.8% and new shares for 10.2%.
• Allocation: 100% of the offering shares were initially allocated to institutions participating in the book-building process.Financial advisors, in coordination with the company, may reduce the allocation to participating groups to 80% if individual subscribers fully subscribe to their allocated shares.

Use of Proceeds

The net proceeds from the share sales will be distributed as follows:

• 66% of net revenues from the sale of shares will be used to:
  • Finance the company’s incentive program using 8,320,237 treasury shares (5.42% of the company’s shares) and 3,953,763 sales shares (2.58% of the company’s shares).
  • Distribute the remaining net returns to sellers based on their ownership rate in sales shares (excluding the 3,953,763 shares).
• 34% of the net revenues from the new shares will be allocated to the company to finance its growth strategy and for general corporate purposes.

Advisors and Managers

flynas has appointed a consortium of financial experts to manage the IPO process:

• Financial Advisors and Coverage Contractors: Goldman Sachs – Saudi Arabia,Saudi Fransi Capital Company,and Saudi Morgan Stanley Company.
• Subscription Manager: Saudi Fransi Capital Company.
• Subscription Registry Managers: Al-Arabi Financial Company, Al-Rajhi Financial Company, saudi-French Capital, City Group Saudi Arabia, NBA Saudi Arabia, Saudi Sachs saudi Arabia, and Murghan Stanley.
• Receiving Entities: A wide array of financial institutions including All financial countries, development for investment, investment capital, Al -Jazeera Capital, financial expert, Al -rajhi Financial, Arab Financial, Saudi French Capital, Financial Faris, Ji IP Capital, Riyadh Financial, Al -Ahly Financial (SABS Infost), Financial Arrow, Al -Ahly Financial, and Capital City.

IPO Schedule