Saudi SABIC considers IPO for subsidiary Gas company

Saudi Basic Industries Corporation (SABIC) is studying strategic options for its National Industrial Gases Company (Gas) subsidiary, including a potential initial public offering (IPO), the company said in a statement on Tadawul on July 9.

SABIC said the move aligns with its strategy to optimise its business portfolio and focus on core operations. The IPO for National Industrial Gases would aim to improve "the group's financial position and added value for shareholders."

The company noted the study is ongoing and evaluation of each option is subject to financial, technical, regulatory and economic factors.

SABIC shares traded at SAR56 at the opening of June 9 session on the Saudi stock exchange following the potential Gas company IPO announcement.

SABIC recorded losses of SAR1.21bn in the first quarter of 2025, compared to profits of SAR246.2mn during the same period in 2024.

The company attributed the quarterly losses to a SAR1.05bn decrease in gross profit and higher other operating expenses, primarily due to non-recurring costs related to a strategic restructuring initiative totalling SAR1.07bn.

The restructuring is expected to positively impact the company's long-term financial results through cost rationalisation estimated at SAR345mn annually and improved operational efficiency.

SABIC's revenues increased 6% in the first quarter compared to the same quarter last year, reaching SAR34.59bn, primarily due to higher sales volumes, partially offset by lower average product selling prices.