Sabic weighs IPO of its gas business: Petrochems giant Sabic is sounding out advisors for the potential listing of its Jubail-based gas unit National Industrial Gases (Gas), Bloomberg reports, citing sources it says are familiar with the matter.

What we know so far: The Tadawul-listed parent company is reportedly in early talks with our friends at HSBC to advise on the transaction, alongside global advisory Lazard and bulge bracket banks JP Morgan and Morgan Stanley. The listing is expected to happen this year, the sources said.

Why Gas? Gas was Sabic’s only unlisted subsidiary to post annual growth in total comprehensive income last year, jumping 59.6% y-o-y to SAR 424.5 mn, according to an earnings report (pdf) for FY 2024. The company’s top line inched up 2.6% y-o-y to SAR 1.6 bn.

This positions Gas as a strong candidate for a potential listing — one that could offer a much-needed lifeline for the petrochems giant, which has reported losses for two consecutive quarters due to rising costs. The industrial gases producer and supplier is 74% owned by Sabic.

Market reax: Sabic’s share price closed 0.33% down yesterday at SAR 60.30 apiece.

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