Saudi Arabia’s oil company Aramco IPO began trading for the first time on Wednesday and surged past all expectations by gaining 10 per cent in its first moments on the market. The price gives it a valuation of USD 1.88 trillion, higher than any other listed company in the world, comfortably ahead of top listed companies—Microsoft and Apple.

The oil giant started trading on the Saudi Tadawul stock exchange after a mammoth USD 25.6 billion initial public offering that set the record as the biggest ever in history. Trading for Aramco shares began at 10:30 am in Riyadh. The company had announced a sale of 1.5 per cent of its shares at 32 Saudi riyals a share, or what is 8.53.

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At a pre-trading auction earlier in the morning, bids for Aramco’s shares reached the 10 per cent limit on stock price. That pushed the price of Aramco shares to 35.2 riyals, or USD 9.39 a share.

Apart from Microsoft and Apple, Saudi Aramco also worth more than the top five oil companies – ExxonMobil, Total, Royal Dutch Shell, Chevron and BP combined.

Only Saudi citizens, residents of Saudi Arabia or nationals of Gulf Arab states were permitted to buy Aramco shares as individual investors. Aramco is selling 0.5 per cent of its shares to individual retail investors most of whom are Saudi nationals and 1 per cent to institutional investors, most of which are Saudi or Gulf-based funds.

Saudi Crown Prince Mohammed bin Salman plans to use the money raised to diversify the country’s economy and fund major national projects that create jobs for the millions of young Saudis entering the workforce.

What the 34-year-old crown prince had initially sought was a USD 2 trillion valuation for Aramco and the sale of up to 5 per cent of the company – on an international stock exchange as well as the Saudi market – that could raise USD 100 billion.

Instead, potential buyers outside Saudi Arabia thought his 2 trillion valuation was too high. With gains made on the local Tadawul and strong local support, the company could reach the 2 trillion mark in trading on the local exchange.

(With input from agencies)