Flynas IPO oversubscribed by nearly 100 times before trading

The $1.1 billion IPO for Saudi Arabia’s Flynas low-cost airline has reached the runway and is ready for take-off after the offering to institutional investors was nearly 100 times oversubscribed.

The carrier, whose largest shareholders are Prince Alwaleed bin Talal’s Kingdom Holdings and the government’s Public Investment Fund, is the latest in a slew of IPOs for Saudi companies that have also encountered high demand, including Umm Al-Qura construction, which raised more than $500 million in March.

Flynas shares, which will start trading on Riyadh’s Tadawul Stock Exchange May 28, were set on Wednesday at 80 riyals apiece, the top of the range given by the IPO’s investment bankers.

Proceeds from the offering are slated for expanding Flynas’ fleet by 225 planes and launching several new flight hubs. The budget airline flies to 59 destinations and is popular with Muslim pilgrims to Mecca and expat workers from India, the Philippines and elsewhere.

Flynas is not alone among Gulf airlines interested in going public. Abu Dhabi-based Etihad Airways, owned by the ADQ sovereign wealth fund, is actively preparing for an IPO while Emirates and Qatar Airways have been mulling share sales for years.

Still waiting to stretch its wings is Riyadh Air, Saudi Arabia’s new national carrier wholly owned by the PIF, which plans to start flying its stylish royal blue jetliners this year in the fourth quarter.

UAE’s Arada buys Australian builder Roberts in $20M deal

UAE developer Arada has acquired the New South Wales state arm of Australian construction firm Roberts Co, investing $20 million to support its expansion in Australia and securing 700 jobs across its supply chain.

The Sydney-based builder will become the “main delivery pipeline” for 5,000 homes Arada plans to build in the next 24 months, chief executive Ahmed Alkhoshaibi told The Australian Financial Review.

The Gulf cash injection comes at a critical time for Roberts Co, which was forced to put its Victorian state arm into administration in March, leaving projects worth billions in limbo.

Arada, a Sharjah-based firm founded by the son of Saudi Arabia’s Prince Alwaleed bin Talal and Sharjah’s Deputy Ruler Sheikh Sultan bin Ahmed Al Qasimi, has been growing at lightning speed.

It first announced it would make its international debut in Australia last August. Alkhoshaibi told The National in February that the company was open to the possibility of an IPO after it sold out a $1.5 billion Sharjah project in three hours.

Saudi Arabia is home to most Arab billionaires, Forbes finds

Saudi Arabia retains the title this year as the Arab world’s top home for billionaires, with 15 individuals appearing on the Forbes list for 2025.

Leading the Saudi rankings is Prince Alwaleed bin Talal, with a net worth of $16.5 billion.

Others include healthcare magnate Sulaiman Al-Habib, with a fortune of $10.9 billion, and Emad Al-Muhaidib, with $3.8 billion.

The UAE followed with five billionaires holding a combined $24.3 billion, led by real estate tycoon Hussain Sajwani at $10.2 billion. Egypt also has five billionaires, led by Nassef Sawiris, with a net worth of $9.6 billion.

Saudi Arabia’s Prince Alwaleed Bin Talal among biggest backers of Elon Musk’s start-up xAI

Saudi Arabia’s Prince Alwaleed Bin Talal and his Kingdom Holding Co. continue to rank among Elon Musk’s biggest backers, participating in the $6 billion Series B funding round of the tech billionaire’s startup, xAI.

In a blog post on xAI’s website, a description of key investors includes the Saudi prince’s personal office and his Tadawul-listed company.

The kingdom’s sovereign wealth fund, the Public Investment Fund, acquired a $1.05 billion stake in KHC in 2022.

The conglomerate, along with the private office of Prince Alwaleed, were jointly the second-largest investors after Musk’s Twitter takeover in 2022, according to a statement released by the Saudi prince at the time.

xAI, which is focused on the development of advanced AI systems, is valued at $24 billion, following the latest funding round that saw participation from Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital and Fidelity Management & Research Company.

The cash will be used to take xAI’s first products to market as the Musk entity rises to challenge OpenAI’s ChatGPT, which is working on an update to its flagship AI product.  

Meanwhile, MGX, the artificial intelligence mega-fund created in January through a partnership between Abu Dhabi sovereign wealth fund Mubadala and G42, held its first board meeting this week, chaired by Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi.

The board meeting was attended by Mubadala CEO and MGX Vice-Chair Khaldoon Al Mubarak, as well as Jassem Mohamed Bu Ataba Al Zaabi, Peng Xiao and Ahmed Yahia Al Idrissi.