Saudi Arabian low-cost carrier Flynas has been valued at SR13-13.7 billion ($3.5-3.6 billion) by the pricing of its initial public offering.
Flynas recently launched the IPO to sell a 30% shareholding in the company through a mix of divestment of current capital and issue of new stock.
It states that the price range for the offer has been set between SR76 and SR80 per share.
The institutional bookbuilding subscription period will run to 18 May.
Several Flynas shareholders will divest a total of 33.8 million shares, including 8.3 million treasury shares, while 17.4 million new shares will be issued.
The budget carrier says it expects the overall offering to be around SR3.9-4.1 billion.
Two-thirds of the net proceeds will be distributed to shareholders with those from the treasury sale used to finance the company’s “incentive programme”, it states.
The remaining one-third will be used by the company to fund its growth strategy, and also go towards general corporate purposes.
Flynas shareholders taking part in the divestment include Kingdom Holding Company whose chair is Alwaleed bin Talal, a high-profile business and royal figure in Saudi Arabia.
