SABIC Considers IPO for GAS Subsidiary
Deal News | Jul 09, 2025 | Zawya
Saudi Basic Industries Corporation (SABIC), a leading petrochemicals company, is currently reviewing strategic options for its subsidiary, National Industrial Gases Company (GAS). Among the options being considered is an initial public offering (IPO) and listing on the Saudi Exchange (Tadawul). SABIC holds a 74% stake in GAS, with the National Gas and Industrialization Company owning another 9%. This decision aligns with SABIC's strategy to optimize its portfolio and concentrate on core business activities. Saudi Aramco owns a 70% stake in SABIC, and the potential IPO aims to enhance SABIC's financial standing and benefit its shareholders. The evaluation process is ongoing, considering a variety of financial, technical, regulatory, and economic factors.
Sectors
- Petrochemicals
- Industrial Gases
- Finance and Investments
Geography
- Saudi Arabia – Both SABIC and its subsidiary GAS are based in Saudi Arabia, with the IPO planned to list on the Saudi Exchange (Tadawul).
Industry
- Petrochemicals – SABIC operates as a petrochemical company, making this industry classification relevant.
- Industrial Gases – GAS, the subsidiary under consideration for IPO, operates primarily in the production and supply of industrial gases.
- Finance and Investments – The potential IPO of SABIC's subsidiary is a financial transaction indicative of strategic investment activities.
Financials
- 74% – The stake that SABIC holds in National Industrial Gases Company (GAS).
- 9% – The stake that the National Gas and Industrialization Company holds in GAS.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Saudi Basic Industries Corporation (SABIC) | Parent Company | Company | A leading player in the petrochemicals industry, 70% owned by Saudi Aramco. |
| National Industrial Gases Company (GAS) | Target Company | Company | GAS is primarily engaged in the production and supply of industrial gases. |
| National Gas and Industrialization Company | Minority Stakeholder | Company | Holds a 9% stake in GAS and is a Saudi-listed company. |
| Saudi Aramco | Majority Owner of SABIC | Company | Owns 70% of SABIC. |