Saudi Budget Airline flynas Launches IPO to Raise $1.1 Billion

Saudi Arabian budget airline flynas announced on Monday it is seeking to raise up to SAR4.1 billion ($1.1 billion) through an initial public offering (IPO) on the Saudi stock exchange, marking the first public share sale by a Gulf-based airline in nearly two decades.

Backed by billionaire investor Prince Al Waleed Bin Talal, flynas is offering 30 percent of its shares to the public. The airline has set the IPO price range between SAR76 and SAR80 per share, which could value the company at up to $3.6 billion.

The IPO forms part of Saudi Arabia’s broader economic diversification plan, which aims to reduce the kingdom’s dependence on oil revenue. Tourism is a central pillar of this strategy, with Saudi authorities pushing to attract both religious and non-religious visitors. Flynas, as a low-cost carrier, plays a key role in expanding domestic and regional connectivity to support this vision.

This IPO will be only the third public listing by a Gulf airline, following the United Arab Emirates’ Air Arabia and Kuwait’s Jazeera Airways, and is expected to draw strong investor interest as the kingdom’s aviation and tourism sectors undergo rapid transformation.

According to a statement released by flynas, the institutional book-building period began on Monday and will run through May 18. The company plans to allocate 34 percent of the net proceeds from the share sale toward expanding its operations and funding general corporate purposes. This includes investing in new routes, fleet expansion, and strengthening its presence in regional and international markets.

The remainder of the proceeds will go to selling shareholders, which include Kingdom Holding Company, the investment firm founded by Prince Al Waleed. Kingdom Holding has long supported the airline and is expected to retain a significant stake post-listing.

Founded in 2007, flynas operates a fleet of narrow-body aircraft and serves more than 70 domestic and international destinations. The IPO is seen as a milestone moment for the Saudi aviation sector and comes amid a flurry of new infrastructure projects and policy reforms designed to position the kingdom as a global tourism and transit hub.

With investor appetite for regional listings growing and Saudi Arabia’s economic reforms in full swing, flynas’s offering is likely to be closely watched across the Gulf and beyond.