Saudi Arabia’s Flynas Co. attracted about 410 billion riyals ($109 billion) in orders for its $1.1 billion initial public offering, underscoring strong investor appetite for Middle Eastern listings.
The low-cost carrier priced its share sale at 80 riyals apiece, the top of the marketed range, implying a market capitalization of 13.7 billion riyals.
The institutional tranche was nearly 100 times oversubscribed on strong local and international demand, according to a statement on Wednesday. With retail orders still to come, the final book is expected to be even larger.
Flynas’ planned listing on the Riyadh stock exchange will comprise a mix of new shares and stock offered by existing investors including Prince Alwaleed bin Talal’s Kingdom Holding Co. and National Flight Services Co. The proceeds are earmarked for fleet expansion and the launch of additional operational hubs.
A rebound in global stock prices is luring firms looking to go public off the sidelines after the worst of the tariff-induced market volatility appears to be over. In the Middle East, which has been a hub for new share sales over the past few years, a handful of companies have launched IPOs in recent weeks and garnered strong demand.
Saudi hospital operator Specialized Medical Co.’s $500 million IPO sold out in hours, and cardboard manufacturer United Carton Industries Co. drew more than $20 billion in orders.
Over in the United Arab Emirates, Dubai Holding attracted $15 billion in orders for the $584 million IPO of its residential real estate investment trust.
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