Saudi Budget Airline flynas IPO Sees Strong Retail Demand, 3.5x Oversubscribed

Dubai : Saudi Arabia’s leading low-cost carrier flynas has confirmed overwhelming interest in its initial public offering (IPO), with the retail tranche oversubscribed 3.5 times. This comes on the heels of an extraordinary response from institutional investors, where subscriptions soared to nearly 100 times the allotted shares, generating over SAR 409 billion in demand.

Retail investors will receive a minimum allocation of 10 shares each, with the remainder distributed on a pro-rata basis, resulting in an average allocation factor of 12.3%.

The final offer price was set at SAR 80 per share, the upper end of the previously disclosed price range. This values flynas at approximately SAR 13.6 billion ($3.6 billion) upon listing.

“This exceptional level of demand is a testament to the confidence in our growth strategy and the strength of our position in the regional aviation market,” said Bander Almohanna, CEO and Managing Director of flynas.

A total of 10.25 million shares were allocated to retail investors, representing 20% of the IPO. Any excess subscription funds will be refunded by June 5, while the listing date on the Saudi Tadawul exchange will be announced soon.

Strategic Growth Path Ahead

flynas sees the IPO as a critical milestone in its long-term vision to scale operations and expand its route network.

“This IPO marks a strategic step forward in achieving our ambition to become the leading low-cost carrier for short- and medium-haul travel across the Middle East and North Africa by 2030,” said Almohanna.

As the only independent airline in Saudi Arabia, flynas is positioned to benefit significantly from the Kingdom’s ambitious aviation and tourism strategies. The airline also expects to leverage rising passenger traffic across the GCC and MENA regions, supported by increasing demand for cost-effective travel solutions.

Strong Momentum in GCC Capital Markets

The flynas IPO is one of the most closely watched listings in Saudi Arabia and the broader Gulf region this year. In the UAE, the recent listing of Dubai Residential REIT also drew significant investor attention, underscoring the growing appetite for public offerings in the region’s capital markets.