Saudi Arabian national petroleum and natural gas firm Saudi Aramco shares have surged 10% above their initial public offering (IPO) price upon its debut on the Saudi Stock Exchange (Tadawul).

Saudi Aramco recently completed the largest IPO by raising $25.6bn for a 1.5% stake in the company, overtaking the $25bn raised by Alibaba for its IPO in 2014.

In November 2019, Saudi Aramco set the offer price range for the IPO of its shares at SAR30 ($7.90) to SAR32 ($8.50) a share.

The state-owned firm’s shares now started trading at SAR32 ($8.50) per each share and a market value of about $1.88tn. Saudi Aramco noted that the IPO attracted more than five million subscribers.

Saudi Aramco Board of Directors chairman Yasir Othman Al-Rumayyan said: “My focus, and that of our Board of Directors, is to work in the interests of all shareholders, guiding Saudi Aramco as it continues to fulfil its vital role in global energy supply, whilst striving to create long-term value to benefit all shareholders.

“Today’s milestone underlines the Kingdom’s commitment to nurturing a strong capital market and demonstrates further significant progress in delivering Vision 2030 – the Kingdom’s transformation, economic growth and diversification program that continues with pace and determination.”

According to the BBC, Saudi Arabia’s royal family is privatising assets as part of a plan to modernise the Saudi economy by reducing its reliance on oil. The sales proceeds will be used for non-energy investments, reported BBC.

Saudi Aramco president and CEO Amin Nasser said: “We believe the demand from a broad base of individual investors and such a wide range of institutions reflects trust in our long-term strategy and our vision to become the world’s preeminent integrated energy and chemicals company, operating in a safe, sustainable and reliable manner.”

Earlier in December 2019, Riyadh-based investment bank Samba Capital received over SR21.8bn ($5.8bn) in subscriptions from retail investors for the IPO of shares in Saudi Aramco.