Retail subscription to 10.25M flynas shares starts on TASI today

One of Flynas' aircraft

The subscription period continues for three days until June 1.

Last March, the Capital Market Authority (CMA) approved the company’s application to list and offer 51.3 million shares on TASI, representing 30% of its post-IPO capital of SAR 1.7 billion. They constitute 33.4% of the current capital pre-increase, which currently stands at SAR 1.53 billion, divided into 153.43 million shares, at a nominal value of SAR 10 each.

The initial public offering (IPO) comprises 51.26 million shares, consisting of the sale of 33.83 million existing shares and the issuance and sale of 17.43 million new shares.

Institutional offering ended last week, with a coverage ratio of 100 times. The order book reached more than SAR 409 billion, marking the largest order book in the Saudi market in the recent period.

flynas will be the fifth company to list on TASI this year, following the IPOs of Derayah Financial and Arabian Company for Agricultural & Industrial Investments (Entaj) on Feb. 20 and 26, respectively, as well as Umm Al Qura for Development and Construction Co. (Masar) and United Carton Industries Co. (UCIC) on May 5 and May 12, respectively.

Tadawul witnessed 14 IPOs last year, following listings by Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona Co. and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28, Rasan Information Technology Co. on May 29, Almajed for Oud Co. on Sept. 15, Arabian Mills Co. on Sept. 18, Fourth Milling Co. (MC4) on Oct. 2, Tamkeen Human Resources Co. on Nov. 5, United International Holding Co. on Nov. 19,  Almoosa Health Co. on Dec. 23 and Nice One Co. on Dec. 24.

Key Company Information:

Riyadh-headquartered flynas is a Saudi joint stock company, established as a limited liability company (LLC) in 2010.

The airline is 37.1% owned by Kingdom Holding Co. (KHC), and operates domestic and international flights.

The company is considered the largest independent airline in the Kingdom in terms of revenue and passenger numbers. Its operations are focused on air transport, administrative services, and related support services.

According to its Articles of Association, flynas’ activities include passenger air transport, repair of transportation equipment (excluding motor vehicles), cargo handling, other transportation support activities, operating agency services, travel agency activities, and tour operator services.

The company operates through three main business segments: flynas Low-Cost Carrier, flynas Hajj and Umrah, and flynas General Aviation Services (NasJet).

flynas is recognized as a low-cost carrier and has served over 85.7 million passengers under its low-cost carrier segment. The airline has carried approximately 800,000 pilgrims under its Hajj and Umrah segment from 2013 through H1 2024.

According to the prospectus, the company plans to continue focusing primarily on short- and medium-haul flights, including extended medium-haul routes up to 6,000 km, assuming demand patterns remain consistent through 2030.

The company currently operates hubs in Riyadh, Jeddah, Madinah, and Dammam. It aims to expand by adding new operational hubs in high-population areas to cover more than 80% of the Kingdom’s population by 2030.

Flynas’ Key Markets Positioned for Future Economic and Population Growth

The company aims to strengthen its market share across key domestic routes, having launched more than 35 new routes over the past six years.

It confirmed a firm order with Airbus for 195 narrow-body aircraft, including 159 A320neo aircraft and 36 A321neo aircraft. Additionally, the company entered into a separate aircraft purchase agreement with Airbus to acquire 30 wide-body A330neo aircraft, consisting of a firm order for 15 aircraft and purchase options for an additional 15 of the same model. As of Sept. 30, 2024, flynas received 53 narrow-body A320 aircraft, with 157 aircraft still expected to be delivered under the firm order.

As part of this strategy, the company seeks to expand its planned fleet to become one of the largest A320neo operators in the MENA region. It also aims to increase its orders of A321neo aircraft to around 36 to support its strategy to expand its network and destinations.

It plans to utilize the A320neo aircraft to expand its network within a travel range of five to six hours, covering Europe, Western Asia, North/Central Africa, and the Indian subcontinent.

Once the A321neo aircraft join the fleet, the airline will be able to extend its flight range to seven or eight hours, enabling it to add select long-haul destinations to its network, as stated in the prospectus.

flynas Fleet:

The company’s fleet, leased under dry leasing agreements, consists of 61 aircraft, including 53 Airbus A320neo, four Airbus A320ceo, and four Airbus A330 wide-body aircraft.

In addition, the carrier traditionally leased wide-body aircraft annually since 2009 to meet the demands of the Hajj season through its specialized Hajj services segment under the Hajj and Umrah business unit.

flynas Fleet

Company Revenues:

By the end of the first nine months of 2024, flynas’ revenues reached approximately SAR 5.89 billion, with the flynas Low-Cost segment accounting for 85% of the total.

Company Revenues (SAR mln)

flynas Branches and Current Operation Centers:

The company has three branches within the Kingdom located in Jeddah, Makkah, and Madinah. It has four branches outside the Kingdom in Egypt, Turkey, Algeria, and Morocco.

The airline operates extensive routes from its four operation hubs located at King Khalid International Airport (KKIA) in Riyadh, King Abdulaziz International Airport (KAIA) in Jeddah, King Fahd International Airport in Dammam, and Prince Mohammad bin Abdulaziz International Airport in Madinah, serving 16 domestic destinations and 56 international destinations across the GCC countries, the Middle East, Africa, Europe, Central Asia, and the Indian subcontinent.

flynas’s Current Operation Hubs

Workforce:

flynas employed 3,049 staff by the end of the first nine months of 2024. This includes 1,629 Saudi nationals, resulting in a Saudization rate of 55%.

Employees by Department

Shareholders of the Company

The company's major shareholders, each owning 5% or more of its shares indirectly, include Khalid bin Sultan bin Abdulaziz Al Saud, Alwaleed bin Talal bin Abdulaziz Al Saud, and the Public Investment Fund (PIF).

Indirect Shareholders of the Company