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Saudi Aramco to Lead Elite $1 Trillion-Plus Club After IPO

Published 12/06/2019, 05:26 AM
Updated 12/06/2019, 06:52 AM
© Reuters.  Saudi Aramco to Lead Elite $1 Trillion-Plus Club After IPO
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(Bloomberg) -- It seems like only yesterday equity investors had pegged $1 trillion as the dividing line between run-of-the-mill large cap companies and freakishly huge ones. Saudi Aramco just took things to a whole new level.

The oil producer’s initial public offering Thursday valued the company at $1.7 trillion. That may have trailed Crown Prince Mohammed bin Salman’s hoped-for $2 trillion valuation, but it gives the Saudi Arabian behemoth about a $600 billion lead on Apple Inc (NASDAQ:AAPL). and Microsoft (NASDAQ:MSFT) Inc., the only two other companies in the world worth more than $1 trillion.

The race to $1 trillion had become something of a spectator sport in recent years as technology megacaps led the record-long bull market in U.S. stocks. Amazon.com Inc (NASDAQ:AMZN). and Google parent Alphabet (NASDAQ:GOOGL) Inc. have also been in the running, although neither passed the milestone.

Saudi Aramco’s debut would mark the first time in a decade that the world’s largest publicly traded company is outside the U.S. In 2009, Exxon Mobil Corp (NYSE:XOM). lost the title to PetroChina Co.

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