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A Closer Look At What Could Be The World's Largest IPO

AAPL, BABA

Apple Inc. (NASDAQ: AAPL)'s stock has seen some strong momentum over the past month, which has investors and Wall Street debating once again when the company would be worth $1 trillion.

The concept of a trillion-dollar company seems hard to fathom, but there is already a company in the Middle East that is actually valued at more than $2 trillion.

Aramco

Saudi Arabian Oil Co., better known as Aramco is a state-owned producer of petroleum. According to Bloomberg, the company pumps more crude than the top four publicly traded oil companies combined.

Since Aramco is a private company that is controlled by a government not known for transparency and openness, its exact value is hard to derive. Some estimates even peg the giant to be worth as much as $10 trillion, as reported by the Wall Street Journal.

Related Link: How Twilio's Performance Ranks Among Some Of The Most High-Profile IPOs

The Possible IPO

However, the Saudi Arabian government plans to sell up to 5 percent of Aramco as early as next year in a potential public offering. As part of the process of listing on an American or European exchange, an independent audit of the business is required, including details of its reserves and production capacity.

The estimated size of the offering would be around $100 billion and will hold the record as the largest IPO by a large margin — currently held by Alibaba Group Holding Ltd (NYSE: BABA)'s $25 billion raise in 2014.

Bloomberg noted that the Saudi Arabian government would use the proceeds to create a sovereign wealth fund as part of a bold initiative to radically transform the country's economy away from fossil fuels and create millions of new jobs in manufacturing, tourism and other fields.

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