RIYADH: Saudi Aramco’s shares soared on their debut on the domestic stock exchange on Wednesday, becoming the world’s biggest listed company worth $1.88 trillion after a record-breaking IPO.

Aramco had priced the initial public offering at 32 riyals ($8.53) per share, raising $25.6 billion and narrowly eclipsing Alibaba’s IPO of 2014 to become the world’s largest.

Aramco shares climbed the maximum permitted 10 per cent to 35.2 riyals just seconds after the opening bell on Riyadh’s Tadawul exchange and stayed there until trading stopped.

That gives Aramco a market valuation of $1.88tr, making it the world’s most valuable company as it closes in on the $2tr price tag coveted by de facto ruler Crown Prince Mohammed bin Salman.

“Today is a day of immense pride for Aramco,” company chief executive Amin Nasser said at a glitzy launch ceremony.

“Today we make history as Saudi Aramco marks the beginning of an important new chapter in our company’s journey of prosperity,” he added.

The stock sale is the cornerstone of Prince Mohammed’s ambitious strategy to overhaul the oil-reliant economy by raising funds to pour into megaprojects and non-energy industries such as tourism and entertainment.

Wealthy Saudi families are reportedly under pressure from the government to invest in the Aramco stock, with nationalists calling it a patriotic duty.

Published in Dawn, December 12th, 2019