Saudi Aramco held the world’s largest initial public offering when it listed on Saudi Arabia’s Tadawul stock exchange in 2019.
The state-controlled oil company sold 1.5% of its shares in December 2019. The offering raised about $25.6 billion, surpassing Alibaba Group’s 2014 New York flotation, which had raised about $25 billion at the time. Saudi Aramco later exercised an over-allotment option, bringing the total proceeds to roughly $29.4 billion.
Saudi Aramco is formally known as Saudi Arabian Oil Company. Its roots trace back to the oil concessions that led to the discovery of commercial petroleum in Saudi Arabia during the 1930s. The company became publicly traded while the Saudi government retained overwhelming ownership.
The IPO’s size was based on shares sold and offering price; its market capitalization was much larger than the amount raised. This distinction matters because an IPO usually sells only a portion of a company, not the entire business.