Saudi Arabia has sold a proportion of Saudi Aramco (SA), the national petroleum and natural gas company for US$25.6 billion.

Saudi Aramco priced its shares at 32 riyals (US$8.53) and raised just a little more than previous record holder Jack Ma’s Alibaba (US$25 billion) to become the largest IPO in history.

It also makes it the most valuable company in the world, with a $1.7 trillion valuation – a little ahead of Apple, which sits at a comfortable $1.15 trillion.

That was primarily achieved by domestic and regional investors after international investors baulked at the opportunity to buy shares in an oil company that was in the crosshairs of Yemeni rebels.

Aramco earned $111 billion in 2018, according to the prospectus, which is roughly double what Apple did by producing 13.6 million barrels per day of oil equivalent. 

The money will go to Crown Prince Mohammed bin Salman’s to turn the Kingdom of Saudi Arabia into an international tourism and entertainment hub, as the country looks to divest part of its economy away from oil.

According to the Crown Prince Mohammed bin Salman, they will build a city from scratch that will be administered by artificial intelligence as part of its tourism drive.

The road to the IPO was plagued with problems, including a drone attack that cut SA’s profits in half and the company’s chairman chucking a temper tantrum when a couple of multinational banks told him SA wasn’t worth $2 trillion.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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