The world’s largest IPO hit the ground running. Saudi Aramco reached the upper limit set by the Saudi exchange on its first day of trading, after gaining 10% on the day.
While Aramco hit its opening day limit, there’s still work to be done. Crown Prince Mohammed bin Salman is still jonesin’ for that $2T valuation. But with that pesky 10% daily growth cap set by the Tadawul stock exchange, it was only able to reach the lowly valuation of $1.877T.
Sarah al Suhaimi, chairwoman of the Tadawul, called the debut “an extraordinary event in the kingdom of Saudi Arabia and the world at large.” Granted, she has to say that if she doesn’t want a visit from the Crown Prince’s goons.
Watch the throne
Saudi Aramco’s valuation made it official, making the oil company the world’s most valuable company. Oil company? No. The world’s most valuable company. Period.
After Tuesday’s close, Apple, the world’s former Numero Uno, was sitting at only $1.2T. “Help me, I’m poor” – Tim Apple, probably. Apple had been in the #1 spot since February, while Microsoft watched from the three spot, way up in the nosebleeds.
The bottom line…
Despite its success, the Saudi government kept it local. Last week, MbS and the boyz focused on mostly Saudi buyers as it hawked its shares. International interest will be key to long term success but concerns remain about volatile oil prices… and stuff like missile attacks.
Aramco’s team of underwriters also have the option to sell 15% more shares within the first 30 days of it being listed, which could bring the company’s total raised to almost $30B. Excuse me while I break my own record.