Saudi Aramco held the record for the world’s largest initial public offering after listing in December 2019.
Saudi Aramco sold shares on the Saudi Exchange in December 2019 and raised about $25.6 billion in the offering. The company later exercised an over-allotment option, bringing the total proceeds to roughly $29.4 billion. Its initial listing valued the oil producer at about $1.88 trillion.
The offering was part of Saudi Arabia’s Vision 2030 program, which seeks to diversify the kingdom’s economy beyond oil. Selling a portion of Aramco gave the government capital while retaining overwhelming control of the company.
A common mix-up is treating the IPO proceeds and the company’s market capitalization as the same figure. Proceeds are the money raised by selling shares; market capitalization is the value investors assign to all outstanding shares. Saudi Aramco’s ranking can also move as oil prices, profits, and global equity markets change.