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Saudi Aramco Tops $2 Trillion Value in Day 2 of Trading

Saudi Aramco Tops $2 Trillion Value in Day 2 of Trading

Thursday, 12 December, 2019 - 11:30
Saudi Arabia's state-owned oil company Saudi Armco and stock market officials celebrate during the official ceremony marking the debut of Aramco's initial public offering (IPO) on the Riyadh's stock market in Riyadh, Saudi Arabia, Wednesday, Dec. 11, 2019. (AP Photo/Amr Nabil)

Saudi Aramco achieved the $2 trillion valuation sought by Saudi leader Crown Prince Mohammed bin Salman on Thursday as the newly-listed state-owned oil company's shares rose sharply on their second day of trading.


Shares jumped in trading to reach up to 38.60 Saudi riyals, or $10.29 before noon, three hours before trading closes.


Aramco has sold a 1.5% share to mostly Saudi investors and local Saudi and Gulf-based funds.


With gains made from just two days of trading, Aramco sits comfortably ahead of the world's largest companies, including Apple, the second-largest company in the world valued at $1.19 trillion.


Crown Prince Mohammed bin Salman is the architect of the effort to list Aramco, touting it as a way to raise capital for the kingdom´s sovereign wealth fund, which would then develop new cities and lucrative projects across the country that create jobs for young Saudis.


He had sought a $2 trillion valuation for Aramco when he first announced in 2015 plans to sell a sliver of the state-owned company.


At a ceremony Wednesday for the start of trading, Aramco Chairman Yasir Al-Rumayyan, described the sale as "a proud and historic moment for Saudi Aramco and our majority shareholder, the kingdom."


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