Worldâs most valuable company is no longer Apple: Meet the new leader
Apple has been dethroned as the worldâs most valuable company by a surprising contender: Saudi Aramco. The state-owned oil giant from Saudi Arabia made its debut on the stock market on December 11, 2022, and quickly surpassed Appleâs market capitalization of $2.2 trillion.
What is Saudi Aramco and how did it become so valuable Here are some facts you need to know about the new king of the corporate world.
Saudi Aramco stands for Saudi Arabian Oil Company. It is the worldâs largest oil producer, pumping out about 10% of the global supply. It also has the worldâs largest proven oil reserves, estimated at 270 billion barrels.
Saudi Aramco was founded in 1933 as a joint venture between Saudi Arabia and the US oil company Standard Oil (now Chevron). In 1980, the Saudi government acquired full ownership of the company.
Saudi Aramcoâs initial public offering (IPO) was the biggest in history, raising $25.6 billion from selling 1.5% of its shares. The IPO valued the company at $1.7 trillion, making it the most valuable company at the time of listing.
Saudi Aramcoâs shares soared on the first day of trading, reaching the maximum allowed increase of 10%. This boosted the companyâs value to $1.88 trillion, surpassing Appleâs $1.82 trillion at the time.
Saudi Aramcoâs share price continued to rise in the following days, reaching a peak of $10.32 on December 16, 2022. This gave the company a market capitalization of $2.3 trillion, leaving Apple behind by a wide margin.
Why did Saudi Aramco decide to go public and what are the implications for the global economy According to analysts, the main reasons for the IPO were to diversify Saudi Arabiaâs economy away from oil dependence, to raise funds for the kingdomâs ambitious Vision 2030 development plan, and to increase transparency and accountability of the company.
However, the IPO also faced some challenges and risks, such as geopolitical tensions in the Middle East, environmental concerns over fossil fuels, and legal disputes over the companyâs ownership of some oil fields. Moreover, some investors were skeptical about the companyâs valuation and governance structure, which gives the Saudi government significant control over its decisions.
Despite these uncertainties, Saudi Aramcoâs IPO has been hailed as a historic milestone for the company and the country. It also marks a shift in the balance of power among the worldâs corporate giants, as a new player from a different industry and region takes the crown from Apple.
How will Apple respond to losing its top spot as the worldâs most valuable company The tech giant is not likely to give up without a fight. Apple has been known for its innovation and creativity, launching products and services that have revolutionized the fields of computing, communication, entertainment, and education.
Some of Appleâs recent achievements include releasing the iPhone 13, which features a faster processor, a longer battery life, and a cinematic mode for video recording; launching the Apple Watch Series 7, which has a larger and more durable screen, a faster charging time, and new health and fitness features; and expanding its services portfolio, which includes Apple Music, Apple TV+, Apple Arcade, Apple News+, Apple Fitness+, and Apple Pay.
Apple also has some potential projects in the pipeline that could boost its value and competitiveness in the future. These include developing its own electric and autonomous vehicle, dubbed as the Apple Car; creating its own augmented reality (AR) and virtual reality (VR) devices, such as the rumored Apple Glasses; and exploring new markets and regions, such as India and Africa.
Therefore, it is too early to write off Apple as a leader in the global business arena. The company has shown resilience and adaptability in the face of changing consumer preferences, technological trends, and competitive pressures. It remains to be seen whether Saudi Aramco can maintain its edge over Apple or whether the latter will reclaim its throne as the worldâs most valuable company. aa16f39245