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(Bloomberg) -- Saudi Arabian chemicals giant Sabic is exploring an initial public offering of its gas business, according to people familiar with the matter, amid a broader operational review.

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Saudi Basic Industries Corp. is in early-stage talks with potential advisers — including Lazard Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Morgan Stanley — about a possible listing as soon as this year, the people said, asking not to be identified because the information is private.

National Industrial Gases Co., in which Sabic owns a 74% stake, generated 1.6 billion riyals ($427 million) in revenue in 2024, according to its financial statements. Sabic also has exposure to the gas business through its petrochemicals unit.

Deliberations are at a preliminary stage, and no final decisions have been made on timing or adviser mandates, the people said.

Representatives for Lazard, HSBC, JPMorgan and Morgan Stanley declined to comment. Sabic did not respond to a request for comment.

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Saudi companies have raised about $1.3 billion through IPOs so far this year, making it the most active market in the Gulf. Demand for recent listings has remained strong despite tariff-driven volatility. First-time share sales by low-cost carrier Flynas Co. and Specialized Medical Co. were oversubscribed shortly after bookbuilding began this month, while United Carton Industries Co. drew $20 billion in orders for its Riyadh IPO.

Global chemicals producers are under pressure from soft demand, rising costs and shrinking margins. Sabic itself has posted two consecutive quarterly losses and is planning a restructuring to reduce expenses. Its shares have fallen nearly 10% since the start of the year, compared with a decline of about 5% for the broader Saudi index.

--With assistance from Anthony Di Paola.

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