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Investing.com -- Saudi Arabian budget carrier flynas, supported by billionaire Prince Alwaleed Bin Talal, announced on Monday its intention to raise up to 4.1 billion riyals ($1.1 billion) through an initial public offering (IPO) in Riyadh.
The airline is offering a 30% stake to investors, marking the first IPO by a Gulf airline in nearly two decades. The price range for the shares has been established between 76 and 80 riyals, suggesting a market capitalization of up to $3.6 billion.
Saudi Arabia has been focusing on tourism as a crucial element of its domestic economic strategy to decrease its dependence on oil revenue. The kingdom, which draws tens of millions of religious pilgrims annually to its sacred Muslim sites in Mecca and Medina, has overhauled its tourism industry to appeal to non-religious tourists.
The IPO of flynas would be the third by a Gulf airline, following the United Arab Emirates’ Air Arabia and Kuwait’s Jazeera Airways. The institutional book-building subscription period for the IPO commenced on Monday and will conclude on May 18, according to flynas. The airline stated that 34% of the net proceeds from the IPO will be allocated for financing the airline’s growth strategy and for general corporate purposes.
A portion of the remaining funds raised will be distributed to selling shareholders, which include the Kingdom (TADAWUL:4280) Holding Company, an investment firm established by Prince Alwaleed.
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