Flynas picks Morgan Stanley as pushes ahead with IPO

DUBAI, Nov 9, (RTRS): Saudi budget airline Flynas, part owned by Saudi billionaire Prince Alwaleed Bin Talal’s firm, is pressing ahead with an initial public offering and has selected Morgan Stanley to work on it, sources familiar with the matter told Reuters on Thursday.

Flynas is proceeding with its plan to sell existing shares to the public that may include part of Prince Alwaleed’s Kingdom Holding’s 34 percent stake, people familiar with the matter said. That is despite the detention of Alwaleed in an investigation by a new Saudi anti-corruption body. Saudi Arabian IPOs typically involve the sale of around 30 percent of a business.

The central bank has sought to reassure the business community this week that the investigation would not hurt the economy, saying companies and banks owned by detained persons could operate as normal. Kingdom Holding, whose shares have lost around a fifth of their value over the past week, was not available to comment.

It made a statement earlier this week, citing chief executive, Talal Ibrahim alMaiman, that it has received the support of the government, and would continue to operate “business as usual”.

Investment banks pitched for the role two weeks ago, and the decision came this week, according to two sources, declining to be named as the matter was not public.