Saudi Aramco expects to raise $25.6 billion from its initial public offering (IPO), making it the world’s largest recorded IPO to date.
The IPO gives the company a market value of $1.7 trillion, beating Apple’s $1.16 trillion and Alibaba Group’s previous world record IPO of $25 billion in 2014.
One of the driving forces behind listing the state-owned oil company is the need for Saudi Arabia to move beyond oil, which accounts for nearly 70% of government revenue. The company is expected to sell 3 billion shares for a 1.5% stake at 32 Saudi riyals ($8.53) each.
Aramco’s market value will be higher than that of the top five Western oil companies—ExxonMobil, Royal Dutch Shell, Chevron, Total and BP—combined.
The record-breaking stock exchange listing will fund H.E. Prince Mohammed bin Salman’s Vision 2030 plan to develop non-oil sectors within Saudi Arabia’s economy, while inviting multinational companies and foreign investors to Saudi Arabia.