Saudi Aramco was the first company to reach a $1 trillion market capitalization while listed on the Saudi Stock Exchange.
Saudi Aramco reached the milestone shortly after its December 2019 initial public offering on Tadawul, Saudi Arabia’s stock exchange. Its listing was part of Saudi Arabia’s wider effort to develop domestic capital markets and diversify the economy under Vision 2030.
The company’s valuation was driven by its enormous oil reserves, production capacity, and central role in Saudi Arabia’s economy. Its shares rose on the first two trading days, briefly giving the company a valuation near $2 trillion.
Saudi Aramco’s offering is also notable because only a portion of the company was sold to public investors. The Saudi government retained majority ownership, so the market capitalization represented the implied value of the entire company based on the listed share price.