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SABIC selects HSBC and Morgan Stanley to work on its specialty chemicals unit IPO

April 19/2021

MOSCOW (MRC) -- Saudi Basic Industries Corp (SABIC), the worlds fourth-biggest petrochemicals firm, has selected HSBC and Morgan Stanley to work on the planned initial public offering (IPO) of its specialty chemicals business, reported ArabNews with reference to two sources familiar with the matter.

SABIC  hired Saudi investment bank NCB Capital earlier this year to work on the public share sale, which sources said could raise several hundred million dollars.

The specialty chemicals business brings in about USD2 billion in sales each year for SABIC, which is controlled by state oil company Aramco, one of the sources, and a third source, said. The unit produces speciality engineering thermoplastic resins and compounds, composites, thermosets and additives, according to its website.

The country had a flurry of public offerings last year as companies tap into Saudi demand for shares since oil giant Aramcos record IPO in 2019. Saudi Arabia is encouraging more companies to list in a bid to deepen its capital markets under reforms aimed at reducing its reliance on oil.

As MRC informed earlier, SABIC, a global leader in the chemical industry, is looking at converting plastic waste into a form of oil as part of its circular economy push and also plans to establish its first chemical recycling project after signing an initial agreement with Saudi Investment Recycling Company (SIRC), a unit of the Public Investment Fund.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
Author:Margaret Volkova
Tags:PP, PE, PP block copolymer, homopolymer PP, LDPE, elastotermoplast, compounds, petrochemistry, adhesives, Sabic, Saudi Aramco, Russia, Saudi Arabia.
Category:General News
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