Petrochemical giant Saudi Basic Industries Corporation (SABIC) announced yesterday that it plans to launch a $533 million initial public offering (IPO) in one of its subsidiaries by early next year. SABIC will offer investors a 35 percent share in the Yanbu National Petrochemicals Company (YANSAB), retain a 55 percent stake and offer the remaining ten percent to partners in two other subsidiaries, Ibn Rushd and Taif. Only Saudi investors are eligible to subscribe to IPOs in the Kingdom.
YANSAB – located in the industrial city of Yanbu on the Red Sea coast – will produce four million tons per year of ethylene, propylene, polyethylene and other petrochemicals. It is due to start production in 2008.