Saudi Aramco’s 2019 IPO became the largest in history after its shares were listed on the Saudi Stock Exchange.
The company sold a portion of its shares in December 2019 through Tadawul. The base offering raised approximately $25.6 billion, and the exercise of an overallotment option increased the total to about $29.4 billion, surpassing Alibaba’s previous IPO record.
Saudi Aramco is one of the world’s largest integrated energy companies. Its operations include exploration, production, refining, chemicals, and marketing. The company’s scale and access to Saudi Arabia’s large oil reserves help explain why it quickly became one of the world’s most valuable listed businesses.
IPO size and market capitalization are different measures. IPO size is the money raised by selling newly listed shares, while market capitalization is the value of all outstanding shares at a given market price. A company can therefore set an IPO record without having the largest market cap.