Saudi Aramco became the first company outside the United States to reach a $2 trillion market capitalization.
The Saudi Arabian oil producer reached approximately $2 trillion in market value shortly after its December 2019 stock-market debut. Its shares rose strongly during the early trading period, briefly taking the company above the valuation target associated with Saudi Arabia’s planned public offering.
Saudi Aramco’s market value was supported by its enormous oil reserves and production capacity. The company is majority-owned by the Saudi government, so its public shares represent only a small portion of the business. This structure differs from widely held technology companies such as Apple and Microsoft.
The milestone should not be confused with the size of the IPO itself. Saudi Aramco’s initial offering raised about $25.6 billion, while the $2 trillion figure represented the implied value of the entire company, including shares that remained government-owned.