Aramco shares gained significantly on the second day of trading on Thursday (December 12) making the oil and gas company the world’s most valuable listed company at $2 trillion.
Aramco overtook Apple which is now the second-largest company valued at $1.19 trillion as its shares reached up to 38.60 Saudi riyals or $10.29 before noon, three hours before trading closed. This is not surprising considering that Aramco’s shares rose by more than 10% on the first day of trading.
At a ceremony on Wednesday (December 11) for the start of trading, Aramco Chairman, Yasir Al-Rumayyan, described the sale as “a proud and historic moment for Saudi Aramco and our majority shareholder, the kingdom.”
With this feat, Aramco has attained the $2 trillion valuation sought by Saudi crown prince Mohammad bin Salman when he first announced in 2015, plans to sell a sliver of the state-owned company. Though there was scepticism among international investors that the valuation target was too high, Aramco’s share valuation on just the second day has cleared the air regarding such doubts.
Riyadh’s plan to sell a part of the company was aimed to diversify revenue from non-oil sectors and modernise Saudi economy. It was reported that there has been a significant amount of contribution from Saudi royal families and businessmen in response to the Prince’s call to support Aramco’s entry into international finance market. Though Aramco was initially trying to sell 5% of its share, till now only 1.5 % share has been sold which is mostly to Saudi investors and Gulf-based funds.
(with inputs from agencies)