With a market value above $2 trillion, Saudi Aramco has entered the same league as some developed economies. If Aramco was a state, it could have been one of the world’s biggest economies based on its latest valuation.
The company’s shares closed 1.6 percent higher on the Saudi Stock Exchange (Tadawul) at 38 riyals on Monday.
On December 11, Aramco’s shares shot up 10 percent as the company debuted on Tadawul. The company’s first trading session was followed by another day of strong investor demand.
Analysts have said that Aramco’s profitability, management, and quick adoption of technology have made it a better prospect for investors, compared to other privatized national oil companies.
Aramco’s IPO raised $25.6 billion, the largest in history, beating out Alibaba’s $25 billion IPO in 2014. It is now the most valuable company in the world and is worth more than all five energy majors combined.
The oil giant is even $780 billion more valuable than the next largest company Apple Inc.
Investors have long been attracted to Aramco for its profitability and for having the lowest average cost of crude oil production in the world, at around $3 a barrel. It also sits on one of the biggest oil reserves in the world, about 10 times larger than those of its next biggest competitor ExxonMobil.
Aramco, which has set a base dividend of $75 billion in 2020, reported a net profit of $68 billion for the first nine months of 2019. Exxon Mobil, the second largest energy firm with a $300 billion valuation, earned $8.7 billion in the same period.
Here's a look at how Saudi Aramco’s valuation after listing on the Tadawul compares to the gross domestic product (GDP) of some of the world’s largest economies, as well as a few of the biggest names on Wall Street.
Aramco’s Value vs Global Economies
Aramco's market value: $2.02 trillion*
-United States: $21.41 trillion
-China: $15.54 trillion
-Japan: $5.36 trillion
-Germany: $4.42 trillion
-India: $3.16 trillion
-France: $3.06 trillion
-United Kingdom: $3.02 trillion
-Italy: $2.26 trillion
-Brazil: $2.26 trillion
-Canada: $1.91 trillion
-Saudi Arabia: $786.52 billion
*By end of trading on Monday, December 16.