Saudi Aramco became the first publicly traded company to exceed a $2 trillion market capitalization.
Saudi Aramco is the national petroleum and natural-gas company of Saudi Arabia. Its roots trace to the California-Arabian Standard Oil Company, formed in 1933; the company was renamed Saudi Arabian Oil Company, or Saudi Aramco, after Saudi Arabia acquired full ownership in the 1980s.
The company began trading on the Saudi Stock Exchange in December 2019 after an initial public offering. On its second trading day, its market capitalization passed $2 trillion, based on the company’s share price and the valuation of its outstanding shares.
Saudi Aramco’s valuation reflects enormous hydrocarbon reserves, production capacity, and profitability, but its trading history differs from that of older fully public oil majors. The $2 trillion milestone is also distinct from revenue or proved-reserve rankings, which measure different aspects of the business.