Saudi Aramco's market value has been estimated at between $14 trillion and $21 trillion, making it the most valuable company in the world. It is one of the largest companies in the world by revenue and, according to accounts seen by Bloomberg News, the most profitable company in the world. Saudi Aramco has both the world's second-largest proven crude oil reserves, and second-largest daily oil production.
Its 2013 crude oil production total was 3.4 billion barrels (540,000,000 m3), and it manages over one hundred oil and gas fields in Saudi Arabia, including 288.4 trillion standard cubic feet (scf) of natural gas reserves
The world's biggest oil company is planning an initial public offering soon, and it's going to break records. But investors need to approach the Aramco IPO with caution
The Saudi Aramco IPO is projected to be the largest IPO of all time. The company is expected to offer 5% of the company for public sale, and with a total valuation of $2 trillion, the IPO will be worth a record-smashing $100 billion. That's four times bigger than the current record holder, Alibaba Group Holding Ltd. which debuted at a whopping $25 billion.
In fact, Saudi Aramco's market cap is very likely to be larger than Exxon Mobil Corp. (NYSE: XOM), Royal Dutch Shell Plc. (NYSE ADR: RDS.A), BP Plc. (NYSE:BP), and Chevron Corp. (NYSE: CVX), combined.
Aramco will list some shares on the Saudi Arabian stock exchange, but it's also looking to list shares on a major stock exchange with global reach. The company has short-listed exchanges in New York, London, or Hong Kong. But major exchanges like these have public reporting requirements that could open the company up to the public in a way it has never done.
If the Saudi Aramco IPO occurred on a stock exchange in the United States, the firm would need to follow U.S. fiduciary laws regarding transparency and public auditing. It would also have to form a board of directors that could take some power away from the Saudi royal family