Saudi Aramco briefly became the first company to reach a US$2 trillion market capitalization during its initial public offering in December 2019.
The Saudi Arabian Oil Company, commonly called Saudi Aramco, listed shares on the Saudi Stock Exchange, or Tadawul, in December 2019. On its second trading day, its share price rose enough for the company’s implied market value to reach approximately US$2 trillion. The valuation made the offering one of the largest public listings in history.
Saudi Aramco is Saudi Arabia’s national oil company and operates some of the world’s largest hydrocarbon reserves. The listing was part of Saudi Vision 2030, a national program intended to diversify the economy and reduce dependence on oil revenue.
The US$2 trillion figure was based on the share price multiplied by all outstanding shares, including shares not freely traded on the exchange. It is distinct from the amount of money raised in the IPO, which was much smaller than the company’s total valuation.