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Aramco shares jump in world’s largest market debut

Shares of Saudi Aramco, the world’s largest oil company, surged 10 percent within seconds of their market debut, reports the NYT’s Stanley Reed.

The initial public offering is expected to raise at least $25.6 billion, making it the largest ever.

The state-owned company faced headwinds on its journey to the public markets, which started about three years ago when Crown Prince Mohammed bin Salman said he wanted to sell a stake in an effort to wean the Saudi economy off its dependence on oil and government spending.

The Saudi government shifted its strategy, turning to local and regional buyers, limiting the number of shares offered, and downgrading the role of Wall Street banks.

The successful debut has helped Aramco reach a valuation of $1.88 trillion, surpassing Apple as the world’s biggest listed company, Bloomberg reports. And it helped the kingdom’s bourse become the world’s ninth-biggest stock market, even though barely any of Aramco’s shares will trade.