Latest news with #Flynas
Reuters
2 days ago
- Business
- Reuters
Major Gulf markets decline as regional conflict escalates
June 19 - Major stock markets in the Gulf fell in early trade on Thursday amid investor jitters over potential U.S. involvement in the escalating Israel-Iran conflict. Israel struck a key Iranian nuclear site on Thursday and Iranian missiles hit an Israeli hospital while President Donald Trump kept the world guessing about whether the U.S. would join air strikes seeking to destroy Tehran's nuclear facilities. Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.2%, dragged down by a 0.4% fall in Al Rajhi Bank ( opens new tab and a 0.6% decrease in oil behemoth Saudi Aramco ( opens new tab. The Saudi index is on course for its biggest weekly fall in over two months. However, Prince Alwaleed Bin Talal-backed airline Flynas ( opens new tab advanced 3% to 79.60 riyals per share, a day after falling over 3% on its debut. The airline, which sold a 30% stake to investors in the first IPO by a Gulf airline in almost 20 years, was priced at the top of its range at 80 riyals per share. Dubai's main share index (.DFMGI), opens new tab declined 1.3%, dragged down by a 2.4% slide in blue-chip developer Emaar Properties ( opens new tab and a 2% retreat in sharia-compliant lender Dubai Islamic Bank ( opens new tab. Elsewhere, budget airliner Air Arabia ( opens new tab was down 1.6%. In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%. Overnight, the held rates steady as expected but retained projections for two quarter-point rate cuts this year. The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the riyals, are pegged to the U.S. dollar. The Qatari benchmark (.QSI), opens new tab fell 0.8%, with Qatar Islamic Bank ( opens new tab losing 1.6%.
Business Recorder
2 days ago
- Business
- Business Recorder
Major Gulf markets decline as regional conflict escalates
Major stock markets in the Gulf fell in early trade on Thursday amid investor jitters over potential US involvement in the escalating Israel-Iran conflict. Israel struck a key Iranian nuclear site on Thursday and Iranian missiles hit an Israeli hospital while President Donald Trump kept the world guessing about whether the US would join air strikes seeking to destroy Tehran's nuclear facilities. Saudi Arabia's benchmark index dropped 0.2%, dragged down by a 0.4% fall in Al Rajhi Bank and a 0.6% decrease in oil behemoth Saudi Aramco. The Saudi index is on course for its biggest weekly fall in over two months. However, Prince Alwaleed Bin Talal-backed airline Flynas advanced 3% to 79.60 riyals per share, a day after falling over 3% on its debut. The airline, which sold a 30% stake to investors in the first IPO by a Gulf airline in almost 20 years, was priced at the top of its range at 80 riyals per share. Dubai's main share index declined 1.3%, dragged down by a 2.4% slide in blue-chip developer Emaar Properties and a 2% retreat in sharia-compliant lender Dubai Islamic Bank. Most Gulf markets in red as Israel-Iran conflict escalates Elsewhere, budget airliner Air Arabia was down 1.6%. In Abu Dhabi, the index eased 0.1%. Overnight, the Federal Reserve held rates steady as expected but retained projections for two quarter-point rate cuts this year. The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the riyals, are pegged to the US dollar. The Qatari benchmark fell 0.8%, with Qatar Islamic Bank losing 1.6%.
Arabian Post
2 days ago
- Business
- Arabian Post
Flynas IPO Falters Amid Regional Tensions
Saudi Arabia's budget carrier Flynas debuted on the Tadawul at SAR 80, raising SAR 4.1 billion, but shares closed at SAR 77.30—down over 3 %—despite an opening high of SAR 84.10 and a low of SAR 69.90. Investors responded nervously to heightened regional instability following military activity between Iran and Israel. Across Gulf markets, risk aversion sharply impacted airline stocks: Flynas dropped roughly 3.4 % on debut, ACWA Power slipped 3.3 %, and Saudi Aramco eased by 0.3 %. Regional airspace closures disrupted operations, forcing Gulf carriers to reroute flights and ramping up costs. Earlier trading saw Flynas plunge nearly 13 % to SAR 69.90 before recovering amid volatile swings capped by Tadawul's three-day fluctuation limit. Flynas marks the region's largest initial offering so far this year and the first by a Gulf airline in nearly two decades. The institutional tranche drew orders nearly 100 times publication, with the retail portion oversubscribed by 350 %, drawing 666,069 individual investors. ADVERTISEMENT Despite initial jitters, analysts stress Flynas's underlying strength. Its IPO pricing at the SAR 80 range reflects strong demand, and the airline's Saudi domestic base offers cost insulation from international fuel swings. SICO Bank remarked that while valuations were premium, the carrier's growth narrative remains compelling, even amid geopolitical uncertainty. The IPO's success adds momentum to the kingdom's capital markets, with six main‑market offerings this year raising over $2.8 billion and four others awaiting approval. Legal advisors note that despite market turbulence, appetite for public listings in the region remains robust. Operationally, Gulf airlines continue facing disruption. Several regional countries have closed airspace in response to conflict escalation, forcing airlines to reroute flights via longer corridors over Egypt and the Red Sea—pressuring operational efficiency. Fuel costs have jumped in tandem with the conflict, further squeezing airline margins. Gibson Dunn LLP acted as lead counsel, coordinating across global and local underwriting teams that included Goldman Sachs Saudi Arabia and Morgan Stanley Saudi Arabia. The combined institutional and retail interest helped the offering exceed $100 billion in orders. Flynas's Istanbul IPO arrives at a pivotal moment. The airline's strategic plan, backed by Kingdom Holding and the Public Investment Fund, aligns with Saudi Vision 2030's aim to transform the kingdom into a travel destination. Having ordered 160 aircraft from Airbus—including narrow-body A320s and its first wide-body A330s—the carrier is expanding fleet and network rapidly. Industry analysts caution that policy and geopolitical risks will continue to shape investor sentiment. While some entrants have postponed their floatings, many are proceeding quickly—optimising pricing and timing to counter valuation headwinds. The flight path for new listings in the Gulf may be turbulent, but Flynas's performance suggests that well-structured IPOs with strong fundamentals can still attract robust interest.
Zawya
2 days ago
- Business
- Zawya
Mideast Stocks: Major Gulf markets decline as regional conflict escalates
Major stock markets in the Gulf fell in early trade on Thursday amid investor jitters over potential U.S. involvement in the escalating Israel-Iran conflict. Israel struck a key Iranian nuclear site on Thursday and Iranian missiles hit an Israeli hospital while President Donald Trump kept the world guessing about whether the U.S. would join air strikes seeking to destroy Tehran's nuclear facilities. Saudi Arabia's benchmark index dropped 0.2%, dragged down by a 0.4% fall in Al Rajhi Bank and a 0.6% decrease in oil behemoth Saudi Aramco. The Saudi index is on course for its biggest weekly fall in over two months. However, Prince Alwaleed Bin Talal-backed airline Flynas advanced 3% to 79.60 riyals per share, a day after falling over 3% on its debut. The airline, which sold a 30% stake to investors in the first IPO by a Gulf airline in almost 20 years, was priced at the top of its range at 80 riyals per share. Dubai's main share index declined 1.3%, dragged down by a 2.4% slide in blue-chip developer Emaar Properties and a 2% retreat in sharia-compliant lender Dubai Islamic Bank. Elsewhere, budget airliner Air Arabia was down 1.6%. In Abu Dhabi, the index eased 0.1%. Overnight, the Federal Reserve held rates steady as expected but retained projections for two quarter-point rate cuts this year. The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the riyals, are pegged to the U.S. dollar. The Qatari benchmark fell 0.8%, with Qatar Islamic Bank losing 1.6%.
Zawya
2 days ago
- Business
- Zawya
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.
