Saudi Aramco was the first company to exceed US$1 trillion in market value after an initial public offering in 2019.
Saudi Aramco began trading on the Saudi Stock Exchange, known as Tadawul, on December 11, 2019. Its shares rose on the first two trading days, pushing the company’s implied market capitalization above US$2 trillion before the price later fluctuated.
The offering made a portion of the state-owned oil producer available to public investors. Saudi Aramco remained majority-owned by the Saudi government, so the IPO did not represent a sale of the entire company. The company’s value is closely connected to oil production, reserves, prices, and refining and chemicals operations.
Reports sometimes describe the IPO as the largest in history by proceeds, while others distinguish between the size of the offering and the company’s total valuation. Those are separate measurements. Market capitalization refers to the value of shares, not the cash raised in the IPO.