Saudi Aramco became the world's most valuable listed oil producer after its 2019 initial public offering.
The offering took place on the Saudi Stock Exchange, known as Tadawul, in December 2019. Saudi Aramco sold a minority stake while the Saudi government retained overwhelming ownership. The listing gave public investors a way to buy shares in one of the world's most important energy companies, though the majority of the business remained state-owned.
Saudi Aramco's importance comes from its enormous oil reserves, production system and role in Saudi Arabia's economy. Its market value is separate from its annual oil output: valuation reflects what investors believe the company and its future earnings are worth.
The company traces its origins to a 1933 concession agreement between Saudi Arabia and Standard Oil of California. It was nationalized over time and became fully state-owned in 1988. The name Aramco comes from the earlier Arabian American Oil Company.