RIYADH – Saudi Arabia’s state-run oil giant on Wednesday made its debut on the domestic stock exchange (Tadawul), with shares reaching 35.2 Riyal, ($9.39), a 10 percent hike compared to the reference value set at $8.5.
The increase in the value of shares gave the oil giant a record market value of $1.88 trillion.
The price was determined in an auction process which allowed traders to place orders prior to the market opening.
Aramco shares achieved the maximum increase of 10 percent set by Tadawul and remained at that price.
“This is the biggest IPO (initial public offering) in the history of humanity, the Kingdom can be immensely proud,” Yasser al Rumyyan, chairman of Aramco, said at a press conference.
The IPO may encourage other Gulf Cooperation Council (GCC) state oil companies to carry out their own initial public offerings, but Abu Dhabi-based ADNOC is expected to only list the shares of its subsidiaries.
Aramco reported net income of $111.1 billion in 2018 and $46.9 billion in the first half of 2019.
“We will also remain focused on providing our shareholders with resilient value creation through crude oil price cycles,” said Nasser Amin, CEO of Aramco.
“We will also remain firmly focused on safety, on our operational performance capabilities and on our disciplined financial approach.”
Tadawul announced last week that it would limit the weight of its index values so that no company represents more than 15 percent in a bid to reduce the influence of large companies.
Aramco is the largest oil company in the world with a share of 10 percent of world crude production.