The international roadshow for the initial public offering (IPO) of 71 per cent its shares will end on 5 December.
The airline, which is the first flag carrier in the region to offer its shares to the public, is targeting investors in Jordan, the UAE, Germany and the UK.
If the airline’s shares are sold at the maximum offer price, the issue will raise JD 108 million ($254 million), excluding a placement of 8 per cent of the offered shares to the company’s employment fund. Analysts expect the issue to attract high investor demand.
“Most of the IPOs are of greenfield companies, but this one has a track record,” says Ali al-Nasser, an analyst at Global MENA Asset Management. “It will be a refreshing addition to the market.”
The offer is being sold with a maximum share price of JD 3.4 ($4.8). Most IPOs in the kingdom are sold at a par value of JD 1 ($1.4). The shares will list on the Amman Stock Exchange and the proceeds will go to the government’s privatisation fund.
“We have made changes over the past four-five years,” says Samer Majali, president and chief executive officer of Royal Jordanian . “We have been investing heavily in the company, revising the network and modernising our fleet.”
Royal Jordanian will be the third airline to list on a regional exchange. The UAE’s Air Arabia staged an IPO in March and its shares are listed on the Dubai Financial Market. Budget airline Jazeera Airways is expected to list on the Kuwait Stock Exchange this month.