From Riyadh To The Runway: Flynas IPO Is Taking Off
Saudi Arabian budget airline Flynas received $109 billion in orders following the institutional round of its IPO, in a consequential public offering for the low-cost airline marketplace.
The Riyadh-based firm has an established route map that extends to Brussels, Casablanca and Mumbai.
The main objectives for the IPO are to expand the fleet and network, including the lucrative Hajj and Umrah religious travel market, and to become fully digitalized while escalating its cargo operations.
In 2024, Flynas posted mounting revenues with proceeds increasing by 19% to $2.01 billion (about SAR7.6 billion). The airline appeared to be on a sound financial trajectory.
The IPO follows $96 billion worth of orders from Qatar Airways to Boeing for up to 210 jets, including 130 long-range 787 Dreamliners, brokered by President Donald Trump on his recent visit to Doha.
Flynas is the first airline to be listed on the Tadāwul Saudi stock exchange, and the first Gulf airline public offering since Air Arabia’s IPO in 2007.
“Enhanced financial capabilities from the IPO could allow SAUDI ARABIA From Riyadh To The Runway: Flynas IPO Is Taking Off Flynas to enter new markets more aggressively and improve its service offerings, potentially increasing its market share and establishing new hubs in the MENA, Europe, and Asia regions,” says Francois Chadwick, KPMG’s Private Enterprise Global and National Lead Partner of the Emerging Giants practice.
“This could drive down prices benefiting consumers, but may put pressure on other low-cost carriers to innovate and find efficiencies.”
The success of Flynas’ IPO might serve as a benchmark highlighting investor confidence in the low-cost airline sector, potentially leading to revaluations of other airlines’ stocks.
International institutional demand was a key driver of Flynas’ IPO round, underscoring the growing attraction of investing in Saudi Arabia.
“The IPO aligns with Saudi Arabia’s efforts to diversify its economy beyond oil,” Chadwick says. “Strong international interest demonstrates confidence in Saudi Arabia’s economic reforms and growth potential, signifying the country’s increasing integration into global financial markets.”
The Flynas investment aligns with Saudi Arabia’s Vision 2030’s strategic goals by enhancing international partnerships.
