Saudi Arabia’s Sabic considers IPO for its industrial gas unit

Saudi Arabia’s state-owned chemical maker Sabic is considering selling shares of its industrial gas unit as part of a rigorous review of its operations after a string of quarterly losses.

An IPO for National Industrial Gasses Co. on Riyadh’s Tadawul stock exchange is among the “strategic options” being evaluated, Sabic said today in a statement, confirming earlier reports that a share sale was being discussed.

Sabic, a maker of petrochemicals and fertilizers that is 70% owned by Saudi Aramco, has posted losses in its past two quarters, prompting discussions about restructuring the company to focus on its core businesses. Sabic shares are down 16% this year.

Preliminary consultations with investment banks about selling shares of the gas unit – in which Sabic owes a 74% stake – included talks with Lazard, HSBC, JPMorgan Chase and Morgan Stanley, Bloomberg reported in May.

Sabic, short for Saudi Basic Industries Corp., said in today’s statement that it will offer details on its restructuring in the third quarter and aims to complete the plan by the end of this year.