Global financial markets are seeing a wave of spinoffs and initial public offerings from major industrial players. Among the emerging stories, Saudi Basic Industries Corp. (Sabic), a dominant force in the chemicals sector, is considering a public listing for its gas business. This move could mark a significant turning point in Sabic’s corporate restructuring and asset optimization efforts.
Sabic is actively reevaluating its corporate structure in pursuit of greater value and efficiency. The company is in preliminary discussions with renowned financial institutions, including Lazard Inc. $LAZ, HSBC Holdings Plc $HSBC, JPMorgan Chase & Co. $JPM, and Morgan Stanley $MS, regarding a potential IPO of its gas business, with a listing possibly taking place as early as this year. Involving such high-profile advisers underscores Sabic’s commitment to executing a high-impact transaction that could attract extensive investor interest.
Sabic’s gas operations are mainly led by its subsidiary, National Industrial Gases Co., where Sabic holds a 74% stake. According to the latest financial reports, National Industrial Gases Co. posted a revenue of 1.6 billion Saudi riyals (approximately $427 million) in 2025. In addition, Sabic's petrochemicals division is closely linked to its gas operations, underscoring the strategic role of this sector within the broader Sabic portfolio.
A possible IPO of Sabic’s gas unit could represent a pivotal step toward enhancing transparency, supporting financial resilience, and securing capital for future investments. This aligns with a broader industry trend, as major players in the chemicals and energy sectors pursue asset restructuring to boost operational efficiency and adapt to shifting market dynamics.
Determinants Impacting the Listing Decision
The level of interest from international investors and leading financial institutions;
The potential to increase liquidity and unlock the full valuation of Sabic’s gas operations within its corporate structure;
The rising prominence of sustainable energy solutions and advanced raw material demands within the global chemical industry;
The opportunity to further diversify Sabic’s asset portfolio in response to ongoing market transformations.
The potential IPO of Sabic’s gas business signals a significant transformation within the company’s strategy—centered on transparency, efficiency, and agile asset management. If realized, this move could not only improve Sabic’s financial foundation but also serve as a catalyst for further modernization across Saudi Arabia’s industrial and chemical sectors.
The shift towards advanced investment approaches is creating unparalleled opportunities for expansion in capital markets.
Sabic’s potential gas business IPO could really shake up the industry landscape!