National Industrial Gases Company may hit Saudi market this year as SABIC courts global banks for listing
Saudi Arabia’s petrochemical giant SABIC is reportedly weighing a public listing of its gas unit, a move that could stir investor interest even as the company wrestles with a sharp drop in earnings.
Talks are already underway with some of the world’s biggest banks. According to people close to the matter, SABIC is in early discussions with advisers including Lazard, HSBC, JPMorgan Chase, and Morgan Stanley to potentially float National Industrial Gases Company (NIGC) before the end of 2025.
A shift in strategy amid tough earnings season
It’s no secret SABIC’s books haven’t been looking great lately. The first quarter of 2025 saw a net loss of SAR 1.21 billion ($322.65 million). Compare that to a SAR 250 million profit just a year ago, and it paints a clear picture: the petrochemical business is under pressure.
The decision to float its gas unit might be a way to bring in some fresh capital, or at least test the market appetite. After all, SABIC still owns a hefty 74% of NIGC.
Just last year, the subsidiary pulled in SAR 1.6 billion ($427 million) in revenue. That’s no small number, especially for an entity many investors may have overlooked until now.
It’s also worth noting that this isn’t SABIC’s first foray into public markets. The company itself is listed on the Saudi Exchange and is majority-owned by Saudi Aramco.
Who’s who in the room
The banks involved in the discussions—assuming the reports hold true—are global heavyweights. Each brings its own flavor to the table:
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Lazard is no stranger to advising on complex IPOs, especially in emerging markets.
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HSBC has long-standing ties in the Gulf, particularly in energy and chemicals.
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JPMorgan Chase & Co. brings Wall Street firepower and deep capital markets expertise.
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Morgan Stanley rounds out the roster with its extensive experience in structuring cross-border listings.
One industry insider familiar with past Saudi IPOs said the lineup, “reads like a who’s who of global investment banking.” That could signal the seriousness of SABIC’s intent, even if nothing is finalized yet.
What’s National Industrial Gases Company anyway?
To most retail investors outside the region, NIGC probably doesn’t ring many bells. But in Saudi industrial circles, it’s well known.
Headquartered in Jubail Industrial City, NIGC supplies key industrial gases like oxygen, nitrogen, and argon to refineries, petrochemical plants, and manufacturing hubs across the Kingdom.
These aren’t flashy commodities, but they are critical—especially in sectors where downtime is expensive and precision is everything.
NIGC operates under long-term contracts, which makes its revenue relatively stable compared to the volatile swings seen in upstream oil or chemical markets. That kind of predictable income could be attractive to institutional investors hungry for lower-risk, energy-adjacent assets.
One analyst based in Dubai put it simply: “It’s boring, and that’s the point.”
Timing is everything, and this timing is… interesting
SABIC’s timing has raised some eyebrows. Why list a profitable unit right after announcing major losses?
There are a few possible reasons. First, the gas unit’s strength could offset weak sentiment about the parent company’s overall performance. Second, listing now might let SABIC lock in valuations before interest rates dip or geopolitical tensions rattle markets again.
Then there’s the Saudi Public Investment Fund (PIF) angle. As part of its Vision 2030 goals, the Kingdom is pushing for more privatization and public participation in key sectors. A listing like this ticks both boxes.
Still, not everyone’s convinced. One Riyadh-based financial consultant said the decision “smells like a cash grab” and warned that “investors aren’t blind to the timing.”
SABIC’s current ownership, revenues and losses
Even with the financial dip, SABIC remains one of the pillars of Saudi Arabia’s industrial base. But listing a profitable unit could mean they’re starting to prioritize cash flow and balance sheet flexibility over long-term control.
Just one sentence here: Aramco’s involvement adds another layer of strategy to the deal.
What investors are watching
Investors—especially those keeping tabs on Saudi IPOs—will be watching for three things:
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Valuation expectations: Will SABIC price NIGC aggressively, or leave room for aftermarket gains?
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Use of proceeds: Will funds raised go toward covering SABIC’s losses, or be reinvested into growth?
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Market appetite: The Saudi IPO pipeline has been busy. Will there be enough appetite left for another big-ticket offering?
Market sentiment in Riyadh has cooled a bit in 2025 compared to the red-hot listings of 2022–2023. Still, the right story, paired with a steady income-generating business, could easily spark demand—especially from regional wealth funds and sovereign players.
There’s also the retail angle. If SABIC decides to open up a slice of NIGC to individual investors, expect interest to surge.
