PetroChina’s 2007 IPO briefly gave it the world’s largest market capitalization.
PetroChina became the world’s most valuable company by market capitalization on the first day of its Shanghai listing in November 2007. Its shares surged dramatically, giving the company a valuation reported at more than $1 trillion before the price later fell back.
PetroChina is the publicly traded arm of China National Petroleum Corporation, one of China’s major state-owned energy groups. The company explores for, produces, transports, and sells oil and natural gas, making it highly sensitive to commodity prices and investor expectations.
The episode is often cited as an example of how an IPO can create a short-lived market-cap record. It also shows why a company’s intraday valuation may differ from its longer-term ranking and why market capitalization should not be confused with cash or annual sales.