Saudi Aramco’s 2019 initial public offering briefly gave the company a market value near US$2 trillion.
Saudi Aramco listed shares on the Saudi Exchange in December 2019. The offering was designed to raise capital and support Saudi Arabia’s broader economic diversification strategy, while the government retained control of the oil producer.
The company’s enormous valuation reflected the scale and profitability of its hydrocarbon reserves, production network, refining operations, and global energy business. Its valuation was also influenced by oil prices, investor sentiment, and the relatively small proportion of shares made available to the public.
Saudi Aramco is distinct from PetroChina, another state-linked energy company that experienced a very large valuation at its 2007 listing. Both companies are associated with major oil markets, but Saudi Aramco’s offering created the near-US$2-trillion record in 2019.