SABIC on the Capital Markets

SABIC OWNERSHIP STRUCTURE

We went public in 1984 with a listing on the Saudi Stock Exchange, trading under company symbol 2010. At that time, the shareholder base was restricted to Saudi Arabia and other citizens in Gulf Cooperation Council (GCC) countries. In recent years, international investment into Saudi Arabia has risen significantly. In 2018, global financial market indices reclassified Saudi Arabia from a frontier market to an emerging market, marking a major turning point for the nation as it continued its advancement towards Saudi Vision 2030. This was accompanied by a wave of interest from the international investment community towards companies listed on the Saudi Stock Exchange, including SABIC: our foreign investor base has increased from under 1% in 2018 to 7.1% at the end of 2023.

SABIC SHARE PERFORMANCE

SABIC has a 2.2% weighting, with a market capitalization of SAR 250.5 Bn. (US$ 66.8 Bn.) at December 31, 2023, among the 230 companies listed in the Tadawul All Share Index (TASI). SABIC ranks third after Saudi Aramco and AlRajhi Bank, who have weightings of 70.9% and 3.1%, respectively.

SABIC’s share price opened 2023 at SAR 89.80, reaching a high for the year of SAR 97.4 on January 25, 2023, and trading broadly in line with TASI until the beginning of June. It fell to the lowest level for the year on October 24 at SAR 75.30, mostly reflecting bearish market sentiment. During the last 12 months, SABIC’s share dropped by 7.6%, while both the TASI and MSCI Saudi increased by 13.9% and 8.3%, respectively.

For 2023, we had 12 active sell-side analysts. 40% of analysts recommended to buy, 40% recommended to hold, and 20% recommended to sell with an average target price of SAR 95 (as at the end of December 2023).

SABIC’s stock was also one of the most actively traded during the year in terms of value, with SAR 30.1 billion (US$ 8 Bn.) within the Saudi Exchange, and the most traded within the materials sector (where we account for 35.64% of the weight).

SABIC DIVIDEND AND CAPITAL ALLOCATION

We have a track record of delivering stable dividends through the cycle, with a ~4.8% next 12 months dividend yield. Our robust financials are shown through consistently strong free cash flow generation and a conservative leverage profile with ample headroom to fund growth.

In 2023, the economy underwent a downtrend globally, driven by high-energy prices, high inflation, high interest rates, and weak demand. Our global business model, supply chain, and focus on asset reliability continued to be our key strengths during the last year. This provided a platform for growth and shareholder returns by generating a sustainable free cash flow throughout the cycle. There was also a strong focus on capital discipline, which helped to support high dividends and position SABIC well for future growth opportunities. Distributing competitive dividends to our shareholders remains a key priority for SABIC.

Read more about our capital market performance and investor engagement.

_{Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2023 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.}