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.
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.
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.
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