Saudi Arabian Oil Company (ARAMCO), the world’s largest initial public offering (IPO), surged past expectations as it debuted trading on the country’s stock exchange on Wednesday morning. The stock moved above the maximum level of 10 per cent in early dealings to 35.2 riyal, confirming its position as the world’s most valuable company worth nearly $1.9tn; more than the combined market capitalization of the five biggest international oil companies.
Shares of the state-owned oil company rose to 35.2 riyals ($9.38) in early deals in Riyadh, after initially debuting at 32 Saudi riyals, giving it a valuation of $1.88 trillion.
The global oil giant’s IPO has surpassed its earlier valuation of $1.7 trillion, announced when share pricing was disclosed last week. The $1.88 trillion valuation remains below what the kingdom had initially been targeting, relying heavily on local investors after canceling international roadshows due to derailed foreign interest.
Aramco had raised $25.6 billion in the biggest-ever IPO, selling shares at 32 riyals each and valuing the company at $1.7 trillion, overtaking Microsoft Corporation and Apple Inc. as the most valuable listed company. Saudi officials have pulled out all the stops to ensure that the stock trades higher.