Saudi Aramco set the record for the largest initial public offering by raising about $29.4 billion in 2019.
Saudi Aramco, formally Saudi Arabian Oil Company, offered shares on the Saudi Exchange in December 2019. The sale initially raised about $25.6 billion, and an additional share-allotment option increased the total to approximately $29.4 billion. The offering surpassed Alibaba’s 2014 IPO record.
The company is one of the world’s largest integrated energy producers, with operations spanning exploration, production, refining, chemicals, and distribution. Because the Saudi government retained most of the company, only a small percentage of its shares was sold to the public.
IPO proceeds and market capitalization are different measures. The IPO amount records money raised in the share sale, while the market capitalization reflects the value of all outstanding shares at the trading price. Saudi Aramco’s listing therefore created a huge public valuation without making the whole company available to investors.