Saudi Aramco briefly became the first publicly traded company valued at $2 trillion in December 2019.
The state-controlled Saudi Arabian Oil Company reached that valuation on its second day of trading on the Saudi Stock Exchange, known as Tadawul. Its initial public offering was priced at 32 Saudi riyals per share, giving the company a valuation near $1.7 trillion at the offering price.
The company’s valuation was tied to its enormous petroleum reserves, production capacity, and central role in Saudi Arabia’s economy. Its listing was a major part of the country’s Vision 2030 program, which seeks to diversify the economy and reduce dependence on oil.
The $2 trillion level was not maintained for long as the share price moved. This is a useful reminder that market capitalization is a changing market measure rather than a permanent company attribute.