Saudi Aramco Surges 10% on First Trading Day to Claim World's Largest Company Title
Saudi Aramco debuts on the Riyadh stock exchange with a 10% surge, reaching a massive $1.88 trillion valuation. The historic local listing easily surpasses Alibaba's record to become the biggest initial public offering in history.
Saudi Aramco shares surge 10% to hit their daily limit as the state-owned oil giant debuts on the Saudi Tadawul exchange. The early trading jump raises the company's valuation to $1.88 trillion, making it the largest listed company in the world ahead of tech giants Microsoft and Apple. CEO Amin Nasser expresses satisfaction with the market's strong response to the initial pricing.
This historic listing sells 1.5% of the company and easily tops the previous global record set by Alibaba in 2014. The successful debut relies heavily on local investors after the company cancels international roadshows due to a lack of strong foreign interest. Despite the impressive market debut, the final valuation falls short of the $2 trillion target originally envisioned by Crown Prince Mohammed bin Salman.
The long-awaited public offering serves as the centerpiece of Saudi Arabia's Vision 2030 initiative, a sweeping plan aimed at transforming the kingdom's economy. Aramco promises investors sustained and growing dividends while it continues its global leadership in the energy sector. Local enthusiasm for the share sale proves overwhelming, with banks reporting that the local portion of the offering is many times oversubscribed.