Flynas to float 30% stake in Saudi IPO after record profit
Updated 06 May 2025
MIGUEL HADCHITY
RIYADH: Saudi low-cost carrier flynas plans to float 30 percent of its share capital in an initial public offering on the Kingdom’s main stock market, becoming the country’s first airline to list on Tadawul.
The IPO, approved by the Capital Market Authority, will involve 51.26 million shares, including both newly issued shares and those offered by existing shareholders. Book-building for institutional investors is set to begin on May 12, with retail subscriptions to follow at the end of the month, the company said in a release.
Flynas will also become the first Gulf airline to go public in nearly two decades, reflecting renewed investor interest in the region’s fast-growing aviation sector and ongoing market liberalization.
The move comes amid a buoyant IPO environment in the Middle East and North Africa, where regional markets saw a surge in listings and capital-raising activity in early 2025. According to an EY report, 14 IPOs raised $2.4 billion in the first quarter — marking a 106 percent increase in proceeds compared to the same period in 2024.
Bander Al-Mohanna, CEO and managing director of flynas, said: “This strategic move will propel us toward becoming the leading low-cost carrier in the MENA region for short and medium-haul markets by 2030. Through this IPO, we are offering investors access to a unique and valuable asset in the rapidly growing KSA and GCC aviation sector.”
The company said the retail subscriptions for flynas shares will run from May 28 to June 1, following institutional book-building. Share allocation and refunds are scheduled for early June, with trading expected to commence after formal listing procedures are complete.
Flynas, which launched in 2007, holds a 23 percent share of Saudi Arabia’s domestic aviation market and operates one of the youngest fleets in the region, with an average aircraft age of 3.2 years. The airline reported an on-time performance rate of 88 percent in 2024.
The carrier plans to use proceeds from the IPO to expand its fleet — including a major order for 225 Airbus aircraft — enhance services for Hajj and Umrah travelers, and invest in cargo operations.
“With an all-Airbus fleet and a significant orderbook, we are poised to meet the increasing air travel demand within, to, and from the Kingdom, supported by our strategic bases in the Kingdom’s busiest international airports,” said Al-Mohanna.
The offering comes on the back of record financial results in 2024, with flynas reporting revenue of SR7.56 billion ($2.02 billion), a 19 percent year-on-year increase, while earnings before interest, taxes, depreciation, and amortization rose 31 percent to SR2.18 billion.
Net profit reached SR434 million, up 8 percent from the previous year. The airline’s operational efficiency and expanding network contributed to these results, with passenger numbers growing by 31 percent to 14.7 million in 2024.
The airline is a key beneficiary of Saudi Arabia’s Vision 2030, which aims to transform the Kingdom into a global aviation and tourism hub. Targets include 330 million passengers and 120 million visitors by 2030.
“As a leading pan-regional LCC, we are well-positioned to benefit from the robust demand driven by Saudi Arabia’s aviation and tourism strategy, as well as the strong growth in passenger traffic across the GCC and MENA markets,” Al-Mohanna added.
Saudi PIF executes 10 investment deals in MENA markets, says official
Updated 11 December 2025
ABDULLAH AL-BUSAILI AL-EQTISADIAH
RIYADH: Saudi Arabia’s Public Investment Fund has executed more than 10 investment deals across several markets in the Middle East and North Africa over the past two years, according to Muteb Al-Shathri, head of PIF’s Securities Investments Private Equity Section, who described the returns as “rewarding.”
Al-Shathri said these markets included Egypt, Bahrain, Jordan, and Oman, noting that the search for opportunities continues through collaboration with the fund’s public and private sector partners, provided a suitable investment climate exists in other regional markets.
Muteb Al-Shathri, head of PIF’s Securities Investments Private Equity Section. AL-EQTISADIAH
He added that the launch of the fund’s regional investment companies reflects the attractiveness and promising opportunities in the MENA region — among the fastest-growing markets globally — while also aiming to strengthen the PIF’s investment partnerships, those of its portfolio companies, and Saudi private sector engagement with targeted regional markets.
This approach, he added, supports the development of long-term strategic economic partnerships to achieve sustainable returns, enhance the fund’s assets, and diversify Saudi Arabia’s revenue sources in line with Vision 2030 objectives.
Al-Shathri said: “The PIF’s recent regional activities are fully aligned with Saudi Arabia’s Vision 2030 strategy.”
The regional investment companies also enable the Saudi private sector to expand its investment footprint across MENA, creating strategic economic collaboration opportunities with private sector players in target markets, while supporting the growth and diversification of the Saudi economy.
Regarding the scale of the deals, Al-Shathri noted that some were announced as private acquisitions, while many of the companies PIF invested in are now publicly traded, adding that comparing share prices at the time of entry with current levels demonstrates strong returns.
According to Al-Shathri, PIF has established offices for its regional investment companies in four key markets — Cairo, Manama, Amman, and Muscat — bringing together the fund’s investment expertise alongside national talent from each country.
“These offices, set up more than two years ago, have been pivotal in identifying suitable opportunities and helping PIF’s companies and the Saudi private sector enter these markets,” he said.
He further said that over the past two years, they have completed more than 10 investment deals across a range of companies and new projects, all of which have seen growth in size, scope, revenues, and profits.
On the performance of regional companies, he explained that activity levels vary depending on market conditions, but operations and asset management continue, adding that the Egyptian market remains one of the largest, with many high-performing companies present.
Highlighting key investments, Al-Shathri pointed to PIF’s 2021 investment in ADES, a well-known oil well drilling company that was traded on the London market before being taken private for two years and later publicly listed. ADES recently signed an agreement with the Syrian Petroleum Co. to develop oil and gas fields and operates in over 20 countries across four continents.
Diverse and promising acquisitions
Al-Shathri detailed specific market investments, beginning with the Saudi-Egyptian Investment Co., which initially acquired stakes in three private-sector companies: B.Tech, a leading electronics and home appliance distributor; CERA Group, the largest private education provider in Egypt; and Cleopatra Hospitals Group.
The company also invested in four public-sector entities: Abu Qir Fertilizers and Chemicals Industries Co., Misr Fertilizers Production Co., e-Finance for financial and digital investments, and Alexandria Container & Cargo Handling Co., the latter of which was recently fully divested.
The Saudi-Jordanian Investment Co. invested in three promising Jordanian firms: Opensooq platform, Capital Bank Group, and Al-Youm Bakery, and announced a major project in healthcare and medical education — the Kingdom Healthcare and Medical Education Project.
The Saudi-Bahraini Investment Co. recently signed an agreement with Mumtalakat, Bahrain’s sovereign wealth fund, to enhance cooperation and investment in strategic sectors. This follows a memorandum of understanding between PIF and Mumtalakat in March 2024 to expand collaboration opportunities.
Al-Shathri added that the Saudi-Omani Investment Co. acquired a 9.8 percent stake in Abraj Energy Services, 3.75 percent in OQ Basic Industries, and 4.9 percent in OQ Oman Gas Networks, for a total investment of $163 million. The company also signed an MoU with the Oman Investment Authority to expand cooperation and support new investment opportunities in the sultanate.
Investment based on clear principles
Al-Shathri emphasized that PIF establishes companies based on strict investment criteria, aiming for sustainable returns in line with calculated risk levels, stressing that returns are received as expected.
“Our investment policy is open to all sectors in every market, though each market has its own competitive advantages,” he said.
He added: “We always target quality investments with rewarding, sustainable returns while creating positive social and economic impact in each market.”
Ongoing market monitoring and research
As for future announcements, Al-Shathri said: “We are constantly monitoring the markets and have a team of experts at the fund working in the research sector. If we identify opportunities in other markets, they will be presented in line with PIF’s standard procedures.”
He added that the fund always pays close attention to the capabilities of the company and other shareholders, “ensuring they are of a very high standard not just in terms of the company’s financial value, because financial value can only be preserved and grown by strong management and partners.”
Domestic focus and strategic partnerships
Regarding the Saudi economy, Al-Shathri said that domestic matters are a priority for the PIF, especially since Saudi Arabia has the largest economy in the region.
He added: “We are always keen to allocate most of our investments within Saudi Arabia and attract investment funds to the country.”
Recently, the fund closed a deal between a consortium of BlackRock investors and Saudi Aramco in the Al-Jafurah field. It is worth noting that BlackRock’s infrastructure investments in Saudi Arabia exceed $20 billion, according to previous announcements.
On the key companies targeted by the fund, Al-Shathri said some will be announced soon, emphasizing that PIF’s strategy is clear: to seek high-growth companies that serve the fund’s objectives and align with Vision 2030 goals.
He pointed out that the fund engages with numerous companies that see significant value in partnering with it, adding that PIF’s efforts go beyond launching investment opportunities and providing regional expansion capabilities, emphasizing that they also include contributing to the companies’ growth, improving governance, and enhancing prospects for public listing.
