Latest news with #SABIC
Arabian Business
20-05-2025
- Business
- Arabian Business
SABIC
The project is to be set up as a JV between SABIC Industrial Investments and Fujian Fuhua Guli Petrochemical Co., on a 51:49 equity stake basis
Arabian Business
20-05-2025
- Business
- Arabian Business
Saudi chemical giant SABIC exploring IPO for its gas subsidiary
Saudi Basic Industries Corporation (SABIC), one of the world's largest petrochemical manufacturers, is considering listing of its gas subsidiary, National Industrial Gases Company, later this year. SABIC, which is 70 per cent owned by Aramco, has been considering the idea for some time. Reuters reported in August 2021 that the company had selected HSBC and Morgan Stanley to work on the initial public offering (IPO), but it did not materialise that year. SABIC plans subsidiary listing Now, Bloomberg has reported, citing people familiar with the matter, that SABIC is in 'preliminary discussion with potential advisers, such as Lazard Inc., HSBC Holdings, JPMorgan Chase & Co. and Morgan Stanley, on listing National Industrial Gases Company as soon as this year'. SABIC owns 74 per cent of National Industrial Gases, which generated SAR1.6 billion (US$427 million) in revenue in 2024. Sources told Bloomberg that discussions were at 'a preliminary stage, and no final decisions have been made on timing or adviser mandates'. However, the companies mentioned above are yet to comment. Global chemicals producers are under pressure from soft demand, rising costs and shrinking margins, added Bloomberg. SABIC itself has posted two consecutive quarterly losses and is planning a restructuring to reduce expenses. Its shares have fallen nearly 10 per cent since the start of the year, compared with a decline of about 5 per cent for the broader Saudi index. Saudi Arabia has been the most active among the MENA countries this year in IPOs. In a report, Ernst & Young said earlier this month that total proceeds during Q1 2025 reached US$2.4 billion, up by 106 per cent year-on-year, as the number of listings rose to 14, from 10 in Q1 2024. The Kingdom led in both activity and proceeds, recording 12 of the 14 listings in the region. The five offerings on the Saudi Stock Exchange (Tadawul) generated US$1.8 billion and seven listings on the Nomu Parallel Market secured US$69 million.
Arabian Post
19-05-2025
- Business
- Arabian Post
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.
Zawya
19-05-2025
- Business
- Zawya
Saudi-listed SABIC plans to float gas subsidiary: Bloomberg
Saudi Basic Industries Corporation is exploring the possibility of listing its gas subsidiary, Bloomberg reported. The Saudi-listed company is in preliminary discussion with potential advisers, such as Lazard Inc., HSBC Holdings, JPMorgan Chase & Co. and Morgan Stanley, on listing National Industrial Gases Company as soon as this year, Bloomberg reported citing people familiar with the matter. SABIC owns 74% of the company, which generated 1.6 billion Saudi riyals ($427 million) in revenue in 2024, according to its financial statements. The petrochemicals major, which is 70% owned by Saudi Aramco, reported a net loss of SAR 1.21 billion ($322.65 million) in Q1 2025, compared to a net profit of SAR 250 million a year ago.
Argaam
18-05-2025
- Business
- Argaam
SABIC considers National Industrial Gases IPO: Report
Saudi Basic Industries Corp. (SABIC) is considering an initial public offering (IPO) of its affiliate, National Industrial Gases Co., as part of a broader operational review, Bloomberg reported citing sources familiar with the matter. SABIC is in early discussions with potential advisors, including Lazard, HSBC Holdings, JPMorgan Chase, and Morgan Stanley, regarding a potential listing this year. For More IPOs The sources further indicated that the talks are still in their preliminary stages, and no final decisions have been made regarding timing or advisor mandates. According to data available on Argaam, National Industrial Gases' capital stands at SAR 248 million. SABIC owns 74% of the company's shares, and National Gas and Industrialization Co. (GASCO) holds 9%. Established in 1983, the company is primarily active in the production of industrial gases and their supply to various industries. National Industrial Gases reported a net profit of SAR 415.8 million in 2024.
