Saudi Aramco was the first energy company to reach a US$1 trillion market capitalization.
Saudi Aramco crossed the valuation during its December 2019 stock-market debut in Saudi Arabia. Its IPO gave investors a tradable stake in one of the world’s largest oil producers and placed the company among the highest-valued corporations ever listed.
The milestone was unusual because most companies reaching trillion-dollar valuations had been technology businesses. Saudi Aramco’s valuation instead rested on oil reserves, production capacity, refining, chemicals, and the financial strength associated with Saudi Arabia’s energy sector.
The company is distinct from Saudi Arabia’s government, although the state owns most of its shares. Its market value can rise or fall with oil prices, production expectations, interest rates, and investor views about the long-term shift away from fossil fuels.