Saudi Arabia has recently turned Aramco (Arabian-American Oil Company) in publicly owned enterprise. By making it a public entity – that investors can buy and sell shares in the stock market.
In the Initial Public Offering (IPO) phase, the worth of the company has plunged to $1.88 trillion that break all the records of the recent decades.
The offering price of Armaco shares were 32 Riyals ($8.53) and people bought the shares of $25.6 billion – eclipsing Alibaba’s $25 billion IPO of 2014.
Moreover, seconds after the debut on Riyadh’s Tadawul exchange, the price per stock rose to 35.2 riyals. This development further boosted the energy giant’s valuation.
On the launch ceremony, the Chairman of Aramco Yasir Al-Rumayyan said “Today the kingdom of Saudi Arabia is no longer the only shareholder of the company. More than five million shareholders have joined including citizens and residents, in addition to Gulf countries and international investment institutions. The kingdom is immensely proud of this day.”
It was the strategy of Crown Prince Mohammad Bin Salman to overhaul the oil-reliant economy.
The IPO process had put the energy giant’s value at $1.7 trillion, far ahead of other firms in the trillion-dollar club, including Apple and Microsoft.
The listing of Aramco, with its huge capital value, boosts the Saudi bourse — known as Tadawul — to the ranks of the world’s top ten.