Saudi Aramco set the record for the world’s largest IPO when it began trading in 2019.
The company listed shares on the Saudi Stock Exchange, or Tadawul, in December 2019. The offering raised about $29.4 billion after an overallotment option, making it the largest initial public offering at the time. On its second trading day, Saudi Aramco’s share price reached the level that implied a market capitalization of about $2 trillion.
The listing sold only a small percentage of the state-owned oil company. That distinction matters: the IPO proceeds measure the shares sold, while market capitalization estimates the value of all outstanding shares.
Saudi Aramco is one of the world’s largest oil producers and has long been central to Saudi Arabia’s economy. Its IPO formed part of Vision 2030, the kingdom’s program to diversify revenue and develop non-oil industries.