Saudi Aramco conducted the world’s largest initial public offering in December 2019.
The Saudi Arabian Oil Company sold shares on the Saudi Exchange in an offering that raised about $25.6 billion. An over-allotment option later increased the total to roughly $29.4 billion, surpassing Alibaba’s 2014 offering.
The IPO valued Aramco at about $1.7 trillion at its initial pricing, below the Saudi government’s earlier target of $2 trillion. Aramco’s enormous valuation reflects its vast oil reserves, large production capacity, refining operations, and importance to Saudi Arabia’s economy.
The record is sometimes confused with the largest company by market capitalization. An IPO measures the money raised when shares are first sold publicly, while market capitalization measures the value of all outstanding shares after listing.