Listing catapults Saudi Arabia ahead of Canada, Germany in market capitalisation
The company’s stock hit the daily upper circuit limit of 10 per cent on the Riyadh’s Tadawul stock exchange on the opening day.
|, ET Bureau
Updated: Dec 12, 2019, 08.39 AM IST
The world’s most profitable company just became the world’s most valuable. And in doing so, Saudi Aramco set many records in value creation. First, its market capitalisation reached $1.88 trillion on debut, or about 90 per cent of India’s total market capitalisation, on Wednesday. Saudi Aramco alone has taken the Saudi Arabian equity market to the planet’s top 10 by value. The valuation of Saudi Arabian equities exceeds those of Canada, Germany and India – and is seventh in the global pecking order. The company’s stock hit the daily upper circuit limit of 10 per cent on the Riyadh’s Tadawul stock exchange on the opening day. It has also overtaken Apple, Microsoft, Alphabet, Amazon and Facebook on the market-cap leaderboard. The market capitalisation of Saudi Aramco is 70 per cent higher than that of Apple Inc, now the secondmost valuable company in the world. Saudi Aramco is the world’s largest oil producer and has one of the largest proven reserves of 270 billion barrel. It raised $25.6 billion in the world’s biggest share sale by selling stock at 32 riyal each and valued the company at $1.7 trillion. The issue constituted around 1.5 per cent of the total equity of the company. Consequently, the free float market capitalisation of Saudi Aramco is just $28 billion. The top five companies by market capitalisation in the world had an average free float of 94 per cent, data from Bloomberg show, before Saudi Aramco joined the top league. Average free float market capitalisation of the top 20 companies globally is 84 per cent.
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