Saudi Arabia’s SABIC announced on Wednesday it is exploring strategic options for its National Industrial Gases Company (GAS), including a potential initial public offering (IPO), as part of a broader portfolio review.
The chemicals giant said the move aligns with its strategy to focus on core operations and optimize its asset portfolio. An IPO, it added, would aim to enhance SABIC’s financial position and create greater value for shareholders.
The chemicals industry globally has faced pressure from weak demand, lower product prices, and high raw material costs — a trend that has squeezed margins across the sector.
SABIC, which is 70% owned by oil giant Saudi Aramco, posted a first-quarter net loss of $323 million in May, citing high operating and feedstock costs. The company has since pledged to cut costs, restructure core operations, and exit non-core businesses.
Earlier this year, SABIC sold its stakes in Aluminium Bahrain (Alba) and the steelmaker Hadeed to other Saudi state-backed entities.
On Wednesday, the company confirmed that its evaluation of GAS remains in progress and that any decisions will be based on comprehensive financial, technical, regulatory, and economic analysis.
SABIC’s stock has dropped 16.3% since the start of 2025, according to LSEG data.