flynas, Saudi Arabia’s low-cost carrier, raised over 1 billion dollars in an initial public offering (IPO) on May 12th. Investors were quick to grab a 30% stake in the airline within minutes of the books opening, being the first IPO from a Gulf airline in over two decades.
flynas Sold Out on Over 50 Million Shares in the IPO
Including both newly issued shares and stock sold by existing investors, the Saudi airline sold 51.26 million shares to its investors. The shares were priced between 76 to 80 Saudi riyals (£15.21-£15.99), collectively raising approximately 4.1 billion riyals (8 Million GBP). Newly issued shares represent 10.2% of the carriers total share capital.
Who Are flynas?
Beginning operations in 2007 as Nas Air, the rebranded flynas is Saudi Arabia’s first low-cost carrier. It currently operates 71 aircrafts to 74 airports in 34 countries with a wide network covering Saudi Arabia, the Middle East, South and Central Asia, Europe, and Northern Africa. The sale of new shares will fund the airlines ambition to grow both their network and fleet. As recorded by ch-aviation their fleet is currently comprised of four A320-200’s, fifty six A320-200N’s, four A330-300’s, and one hundred and fifty three aircrafts on order.
How the Shares Will Affect Their Future
In his announcement of the IPO last week, CEO Bander Al-Mohanna is confident that this move will ‘solidify their position as the leading low-cost carrier for short and medium haul flights across the Middle East and North Africa by 2030’. Fully equipped with an all-airbus fleet and a ‘robust order book’ the airline are well prepared to meet the rising travel demand.
What are your thoughts? Let us know in the comments below!
