Saudi Aramco became the first Middle Eastern company to exceed a $1 trillion market capitalization after its 2019 IPO.
Saudi Aramco began trading on the Saudi Exchange in December 2019. Its shares rose to the upper end of the offering range, giving the oil producer a valuation above $1 trillion and making the flotation one of the largest public offerings ever recorded.
The company is formally known as Saudi Arabian Oil Company and is majority-owned by the government of Saudi Arabia. Its business includes exploration, production, refining, chemicals, and global energy trading. The company’s enormous valuation reflects both its oil reserves and its unusually large production capacity.
The IPO is often described as the world’s largest, although the ranking can depend on whether an offering is measured by proceeds at the initial listing or by later overall share sales. Saudi Aramco’s market value also fluctuates with oil prices and investor expectations.