Flynas IPO: 'Exceptionally strong' interest from investors despite global market volatility, CEO says

Robust religious tourism demand and rapid rise in population support growth, Bander Al Mohanna says

Flynas has announced plans to list 30 per cent of its shares on the Tadawul. Photo: Flynas

Saudi Arabia's Flynas is receiving "exceptionally strong" interest from regional and global investors for its initial public offering, despite volatility in global markets, the airline's chief has said.

Flynas said this week that it will list on the Tadawul stock exchange with a 30 per cent stake sale, offering 51.25 million shares to investors.

The airline's growth strategy, the aviation sector's positive outlook in Saudi Arabia and the Gulf, and momentum in the kingdom's capital markets are driving investor confidence, according to Bander Al Mohanna, chief executive and managing director of Flynas.

"Investor appetite has been exceptionally strong. We’re very encouraged by the positive response from both regional and global investors," he told The National.

"As the first airline to list on Tadawul, we offer a unique and compelling investment opportunity, underpinned by secular growth trends in travel, tourism, and aviation. Investors clearly see the long-term value in our differentiated model and ambitious expansion plans."

Stock markets globally have been extremely volatile in recent weeks due to the prospects of a global trade war fuelled by US tariffs.

"While global investor sentiment can be influenced by macroeconomic headwinds such as US tariffs, Flynas' core business is firmly rooted in the high-growth domestic and regional markets of Saudi Arabia and the GCC," Mr Al Mohanna said.

"These markets are supported by long-term demand drivers - including religious tourism, population growth, and infrastructure investment - which position the company to remain resilient and attractive regardless of short-term external pressures."

Bander Al Mohanna, Flynas chief executive and managing director, said the airline's planned IPO comes amid growing momentum in the Saudi capital market. Photo: Flynas

The budget carrier, which counts billionaire businessman Prince Alwaleed bin Talal among its main backers, will be the first airline to be listed in the Gulf in almost two decades.

The region has a handful of publicly listed carriers, including the UAE's Air Arabia and Kuwait's Jazeera Airways. Abu Dhabi-based Etihad Airways has also said that it is working to become IPO-ready but the decision lies with its shareholders.

Flynas provides potential investors with exposure to a "high-growth sector at the heart of Saudi Arabia’s connectivity and tourism ambitions", Mr Al Mohanna said.

"The offering comes amid growing momentum in the Saudi capital markets, driven by structural reforms, increased global investor engagement, and a broader push to diversify the economy."

Saudi Arabia's strong macroeconomic fundamentals, its ongoing transformation under Vision 2030 and the "strategic role" of the aviation sector within its national agenda will drive investor interest, he added.

Saudi Arabia's budget carrier Flynas will become the first airline to be listed in the Gulf in nearly two decades. Photo: Flynas

Tourism is a major pillar in the Vision 2030 plan to reduce the economy's reliance on oil, with a target of hosting 150 million tourists a year by 2030.

Airlines will benefit from the government's push into tourism, with Riyadh Air debuting by the end of 2025 and flag carrier Saudia growing its Jeddah operations to attract more pilgrims and visitors.

The low-cost travel market is expected to grow from 49 per cent in 2023 to 60-70 per cent by 2030, so "there is an opportunity for us to continue growing with the market", Mr Al Mohanna said. Flynas competes with low-cost carrier flyadeal.

Flynas will use the proceeds from the sale of new shares to expand its fleet with both narrow and wide-body aircraft, grow its route network, establish a new operations base, and for general corporate purposes, the airline executive said.

Saudi Arabia's passenger numbers were up 8 per cent to 34.9 million between January and March, according to the General Authority of Civil Aviation.

About 21 airlines entered the Saudi market over the past year, including China Eastern, Virgin Atlantic, Ita Airways, Eurowings and Air China. More than 20 new routes were established to destinations such as Rome, Hong Kong, and Beijing.