Page 10 - DMEA Week 14 2021

DMEA FINANCE & INVESTMENT DMEA

SABIC hires HSBC, Morgan Stanley

to work on speciality unit IPO

MIDDLE EAST CHEMICAL manufacturer Saudi Basic Indus- pipelines, citing corrosion as an area where
tries Corp. (SABIC) is reported to have brought non-metallics have significant advantage.
in external advisers for the planned initial public
offering (IPO) of the company’s speciality chem- Pyrolysis
icals arm as it also looks to expand its position in This week, SABIC said that it is looking to
the circular economy. develop a plastic waste-to-oil project, having
Sources told Reuters this week that HSBC and signed a preliminary deal with the PIF’s Saudi
Morgan Stanley had been hired to work on the Investment Recycling Co. (SIRC). This would
IPO with the local NCB Capital brought in ear- be SABIC’s first chemical recycling project and
lier in the year. The planned listing is expected comes as part of the company’s efforts to improve
to be worth hundreds of billions of dollars to its circular carbon economic performance.
SABIC. It follows the acquisition last year by Yousef Al-Benyan, SABIC vice-chairman
Saudi Aramco of a 70% stake in SABIC from the and CEO, was quoted by local media as saying:
Public Investment Fund (PIF) for $69.1bn. “This strategic collaboration will help us in our
SABIC is currently the world’s fourth-largest efforts to contribute to fulfilling the Kingdom’s
petrochemicals firm and was targeted by Ara- waste management objectives aligned with Saudi
mco to add world-scale chemical capabilities Vision 2030.”
to its already leading upstream and refining He added that it “also reinforces the Saudi
businesses. G20 Presidency’s commitment to Circular Car-
The speciality chemicals arm produces ther- bon Economy (CCE), ensuring a sustainable
moplastic resins and compounds, composites, future focusing on environment, energy and
thermosets and additives, bringing billions of climate.”
dollars in revenues each year. These products SIRC will use mixed plastic waste as a feed-
offer synergies for Aramco as it seeks to expand stock for conversion into pyrolysis oil for use in
non-metallics for industrial purposes including producing heat, cooling and electricity.™

P10 www. NEWSBASE .com Week 14 08•April•2021