Saudi Basic Industries Eyes Gas Unit Listing This Year
Saudi Basic Industries Corporation is advancing plans to list its gas subsidiary, National Industrial Gases Company , potentially within the current year. The Riyadh-based industrial giant is in early-stage talks with major financial advisers, including Lazard Inc., HSBC Holdings, JPMorgan Chase & Co., and Morgan Stanley, aiming to navigate the initial public offering process. This move reflects SABIC's strategic intent to unlock value from its non-core assets while bolstering its capital markets presence.
NIGC, in which SABIC holds a controlling 74 per cent stake, operates as a significant player in the Middle East's industrial gases sector. The subsidiary recorded revenues of 1.6 billion Saudi riyals, equivalent to approximately $427 million, in 2024, marking its solid contribution to SABIC's overall portfolio. This financial performance underscores the subsidiary's growth trajectory amid increasing regional demand for industrial gases, driven by expanding petrochemical and manufacturing industries.
The discussions with the array of prominent financial advisers signal SABIC's commitment to a well-structured and carefully timed public listing. Lazard, HSBC, JPMorgan, and Morgan Stanley are all experienced in guiding major listings in the Middle East and globally, indicating the complexity and significance of the planned offering. The advisers' roles will likely encompass valuation, market positioning, regulatory navigation, and investor engagement to ensure a successful IPO execution.
The potential listing aligns with broader market trends where large industrial conglomerates in the Gulf region seek to capitalise on the growing investor appetite for energy-related and industrial assets. Saudi Arabia's ongoing economic diversification under its Vision 2030 initiative encourages companies like SABIC to optimise their balance sheets and unlock shareholder value through capital market activities. The public offering of NIGC would not only provide SABIC with fresh capital but also increase transparency and governance standards within the group's portfolio.
See also OPEC+ Faces Internal Strain as Oil Price War Looms
NIGC specialises in producing and distributing a wide range of industrial gases, including oxygen, nitrogen, and argon, essential for sectors such as healthcare, manufacturing, oil refining, and construction. The company's robust operational footprint and customer base in Saudi Arabia and neighbouring Gulf Cooperation Council states position it favourably for growth amid regional infrastructure expansion and industrial development. This market context supports the rationale for bringing NIGC to public investors, who are increasingly seeking exposure to stable, cash-generative industrial businesses.
SABIC's decision to pursue the listing comes after the company recorded strong financial results in 2024, driven by resilient demand in chemicals and materials markets. As one of the world's largest petrochemical producers, SABIC is balancing its strategic focus between core chemical manufacturing and its expanding interests in speciality materials and industrial services. The IPO of NIGC could allow SABIC to redeploy capital into higher-growth segments or pursue further acquisitions.
Market analysts highlight that the industrial gases sector in the Middle East is poised for continued growth, supported by government infrastructure investments and private sector industrialisation efforts. The entrance of NIGC into the public market could set a benchmark for other related businesses contemplating capital market access in the region. Furthermore, the listing is expected to attract a mix of institutional and retail investors, including sovereign wealth funds, regional pension funds, and international asset managers seeking stable, dividend-yielding assets.
Regulatory approvals will be a key milestone for the IPO process, involving Saudi Arabia's Capital Market Authority and stock exchange regulators. SABIC's established track record and adherence to Saudi market rules provide confidence that the listing process will meet regulatory expectations. The timeline for the IPO will depend on market conditions and the outcome of due diligence conducted by the advisers.
See also UAE Secures $1.4 Billion US Arms Deal Amid Trump's Gulf Tour
The involvement of globally recognised financial advisers not only ensures robust market preparation but also signals the scale and ambition of SABIC's offering. These firms bring expertise in pricing, book-building, and investor relations, critical to managing the complexities of a public listing within the dynamic Gulf markets. Their participation also reflects confidence in NIGC's business fundamentals and the broader economic outlook in the region.
As SABIC advances towards listing its gas subsidiary, investors will be watching closely to assess valuation metrics, growth prospects, and the company's governance framework. The IPO could become a landmark deal for Saudi Arabia's capital markets this year, reinforcing the kingdom's commitment to developing a vibrant, diversified economic base through capital market initiatives. It also complements broader government efforts to deepen domestic financial markets and attract foreign investment.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
2 hours ago
- Arabian Post
Aramco Eyes Islamic Debt Market Amid Fiscal Pressures
Saudi Aramco has filed a new prospectus for an Islamic bond issuance programme, indicating a potential return to the debt markets following a $5 billion conventional bond sale earlier this week. The prospectus, dated 30 May, was submitted to the London Stock Exchange, where the sukuk would be listed. Under its terms, Aramco has a year to issue the Islamic bonds. This move comes as the company navigates economic uncertainties and increased oil supply, which have impacted crude markets and reduced the oil exporter's profits. In March, Aramco announced plans to reduce its dividend by nearly a third due to declining profits and free cash flow. The Saudi government relies heavily on revenue from Aramco, including dividends, royalties, and taxes. Last year, oil accounted for 62% of state revenue. The International Monetary Fund estimates that Saudi Arabia requires oil prices above $90 per barrel to balance its budget, while Brent crude is currently trading around $64.40.
Khaleej Times
5 hours ago
- Khaleej Times
AI-powered cyber security for the region is a must for smooth digital transformation
The Middle East is undergoing one of the most ambitious digital transformations the world has seen. National strategies such as Saudi Vision 2030, the UAE's Digital Economy Strategy, and Qatar's Smart Nation framework are setting bold targets for a connected, intelligent future. These plans are already reshaping key sectors including energy, transport, healthcare, and manufacturing. Technologies like 5G, AI, and IoT are central to this shift, but their rapid adoption is bringing a critical challenge to the surface. With every new layer of connectivity comes a growing cybersecurity risk. The region now finds itself at a decisive moment: how can it scale digital innovation while ensuring the security and resilience of the networks that support it? Hyperconnectivity brings new levels of risk By the end of the decade, over one billion IoT devices are expected to be deployed across the GCC. While this will unlock new efficiencies and services, it will also multiply the points of vulnerability. Already, 15% of organisations in the region have experienced data breaches costing over $100,000. The threat landscape itself is evolving. Cybercriminals are using AI to generate new malware, automate large-scale attacks, and even create convincing deepfake phishing campaigns. These tactics can easily bypass legacy security systems. Despite this, the region is demonstrating encouraging levels of cloud readiness. Only 24% of regional businesses feel unprepared for cloud-related threats, compared to 34% globally. This reflects a growing understanding of the importance of building resilience into cloud-native systems. But as risks evolve, so must the defenses. Predictive threat detection and real-time response will be key to navigating what comes next. Intelligent networks and cyber resilience To secure the future, Middle Eastern enterprises must embrace networks capable of defending themselves. This means embedding intelligence, automation, and continuous verification directly into the fabric of network infrastructure. AI is already proving its value in 5G security. A strong example is the generative AI assistant within NetGuard Cybersecurity Dome, built on Microsoft Azure OpenAI GPT, which demonstrates how large language models can enhance threat detection and accelerate informed decision-making during cyber incidents. Yet identifying threats is only the first step. True cyber resilience demands more. It requires a shift to Zero Trust models, where every user, device, and application interaction is continuously authenticated to eliminate assumptions of trust. It also calls for automated incident response systems that can take decisive action in real time, dramatically reducing human error and accelerating resolution. Just as importantly, networks must harness real-time analytics to detect and mitigate vulnerabilities before they can be exploited. These intelligent capabilities are no longer theoretical, they are being deployed across the region today. With the right tools in place, telecom operators and enterprises are beginning to move from reactive defense to proactive protection, where threats are anticipated and neutralized before they cause harm. A commitment to secure transformation Governments across the GCC are taking serious steps to strengthen national cybersecurity posture. The UAE's Cybersecurity Strategy is embedding AI into the country's digital infrastructure. Saudi Arabia's National Cybersecurity Authority is developing frameworks for critical infrastructure protection. Qatar is fostering collaboration between public and private sectors to strengthen cloud resilience. Together, these efforts signal that the region is ready not just to adapt to cyber threats, but to lead in shaping global standards. To do so, the next phase of investment must focus on scalable cloud-native security, AI-powered threat detection, and unified threat response platforms. Building a secure hyperconnected future As digital transformation accelerates, Nokia continues to support the region's cybersecurity goals through innovations that are specifically designed for telecom and enterprise environments. Our AI-driven threat detection platforms are significantly reducing the time it takes to identify and neutralise threats. Advanced solutions such as NetGuard Cybersecurity Dome use generative AI to proactively hunt threats, while our endpoint detection tools monitor the telecom infrastructure in real time. Our collaboration with hyperscalers and cloud providers, such as Microsoft, is enabling integrated, real-time threat visibility across multi-cloud and telecom ecosystems. Trust through autonomous security The Middle East's digital ambitions are bold and achievable, but they rest on a single foundational requirement: trust. As digital economies depend on interconnected networks, intelligent, autonomous security is not a luxury. It is essential. At Nokia, security forms the foundation of our Sense, Think, and Act framework. Built into every network layer, from physical infrastructure to cloud-based applications, our solutions shift from reactive defense to proactive protection. Advanced threat detection, robust encryption, and rigorous authentication at each network layer enable secure, autonomous operations. By embedding AI-driven resilience directly into networks, communication service providers can move towards proactive, self-healing systems that are secure by design. For the GCC, this presents an opportunity to lead the way in establishing secure, scalable, and sustainable digital infrastructure.
Web Release
9 hours ago
- Web Release
High-Level Delegation from Senegal visits Alef Education Headquarters in Abu Dhabi to Discuss Collaboration in Digital Education
Alef Education, a UAE-based global leader in education technology, hosted a high-level delegation from the Republic of Senegal at its headquarters in Abu Dhabi, marking a significant step toward deepening collaboration, fostering knowledge exchange, and showcasing the company's leading projects and innovative solutions in the education sector. The visit builds on the momentum of the previous visit by H.E. Bassirou Diomaye Faye, President of Senegal, to Alef Education's headquarters. This milestone event set the stage for a robust bilateral partnership and reflected a shared commitment to reimagining the future of education through innovation and strategic cooperation. Dr. Aishah Al Yammahi, Strategic Advisor at Alef Education, said: 'This visit marks a significant step in advancing bilateral collaboration and unlocking new opportunities. Senegal's renewed trust in Alef Education, driven by its commitment to educational reform and innovation, is both humbling and inspiring. It motivates us to continue our mission of delivering meaningful, tech-enabled learning experiences that benefit not only today's students but future generations as well.' Delegation members expressed their appreciation for the visit, noting that it served as a platform to consolidate and expand areas of bilateral partnership. They emphasised the mutual dedication of both parties to advancing a future-ready, technology-driven education system that empowers learners and educators. The delegation was given a detailed presentation of Alef Education's portfolio of AI-powered innovative products and services, including smart assessment tools with precision analytics, adaptive learning systems tailored to individual student needs, and professional development programs designed to equip educators with digital-age competencies.
