Saudi Aramco conducted the world’s largest initial public offering in 2019, briefly reaching a $2 trillion valuation.
The Saudi Arabian Oil Company, commonly called Saudi Aramco, listed shares on the Saudi Exchange in December 2019. The offering raised about $25.6 billion, and an overallotment later increased the total to roughly $29.4 billion. That made it the largest IPO ever recorded at the time.
Aramco’s extraordinary valuation reflects its enormous oil reserves, very high production capacity, and central role in Saudi Arabia’s economy. Its shares initially traded at 32 Saudi riyals, valuing the company at about $1.7 trillion, before briefly reaching the $2 trillion mark.
The IPO did not mean that all of Aramco was publicly owned. The Saudi government retained the overwhelming majority of shares. The company is also distinct from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, which owns stakes in several major companies.