Saudi Arabian low-cost airline flynas announced on Monday that it is launching an initial public offering (IPO) to raise up to 4.1 billion riyals ($1.1 billion), marking the first IPO by a Gulf airline in nearly two decades.
The Riyadh-based carrier, which is backed by billionaire investor Prince Alwaleed Bin Talal, is offering 30% of its shares to public investors. The price range has been set between 76 and 80 riyals per share, which would give the company a potential market valuation of up to $3.6 billion.
The offering is seen as a significant milestone for the Gulf’s aviation industry. Only two other regional airlines—Air Arabia of the United Arab Emirates and Kuwait’s Jazeera Airways—have gone public in the past.
The institutional book-building process for the IPO began on Monday and will close on May 18, according to flynas. The company said 34% of the net proceeds from the offering will be directed toward funding its expansion strategy and for general corporate needs. A portion of the remaining funds will be distributed to existing shareholders, including Kingdom Holding Company, which is owned by Prince Alwaleed.
Founded in 2007, flynas operates as Saudi Arabia’s leading budget airline, serving both domestic and international routes. The IPO comes amid the kingdom’s broader efforts to diversify its economy away from oil dependence. As part of its Vision 2030 initiative, Saudi Arabia has positioned tourism and transport as key growth sectors.
The country, traditionally known for drawing tens of millions of Muslim pilgrims to the holy cities of Mecca and Medina, has in recent years expanded its tourism offerings to attract non-religious travelers. This push includes new entertainment venues, resorts, and liberalized visa policies, which have boosted demand for regional air travel.
Flynas’s public listing is expected to be closely watched by investors and aviation analysts alike, not only for its scale but also for what it signals about growing investor confidence in the Middle East’s budget airline market.
Further details on the IPO allocation to retail investors and the timeline for trading debut are expected in the coming weeks.
