Saudi Aramco briefly reached a $2 trillion market capitalization after its December 2019 stock-market listing.
Saudi Aramco shares began trading on the Saudi Stock Exchange, or Tadawul, in December 2019. On the second day of trading, the company’s valuation rose to approximately $2 trillion, a level Saudi Arabia’s government had sought for the initial public offering.
The offering was important because it gave public investors access to a small portion of the state-owned oil producer while raising funds and supporting Saudi Arabia’s economic diversification plans. The company remained overwhelmingly controlled by the Saudi government.
Saudi Aramco is often confused with a private oil major listed in the United States or Europe. Its principal operations are based in Saudi Arabia, and its importance comes from the country’s enormous petroleum reserves and production system. Market values can fluctuate sharply with oil prices, investor expectations, and the company’s dividend policy.