Saudi Flynas Shares Fall 3% in Market Debut Amid Regional Tensions

Shares of Saudi Arabia’s budget airline Flynas closed over 3% lower on its debut, ending the day at 77.30 riyals ($20.61), compared to its listing price of SAR 80.

The stock opened high at SAR 84.10 but fell to a low of SAR 69.90 before clawing back some gains, according to Tadawul data.

The low-cost airline raised SAR 4.1 billion ($1.09 billion) through its IPO.

The listing comes at a challenging time for the aviation industry as escalating tensions between Iran and Israel have led to the closure of several airports and restricted airspace across the region.

Backed by Saudi billionaire Prince Alwaleed Bin Talal, Flynas is the first airline to go public in the region in nearly two decades, following the IPOs of Air Arabia in the UAE and Jazeera Airways in Kuwait.

Despite the geopolitical headwinds, Flynas’ IPO marks a significant milestone for the Saudi aviation sector. The aftermarket performance of the stock will be carefully watched by other Gulf airlines who are looking to raise public funds. 

 Talk of an IPO by  Abu Dhabi-based Etihad, owned by sovereign investor ADQ, has been rife in the market, but the airline has not confirmed a timeline.