How Many Shares of Aramco: Comprehensive Explanation of Shares and Financial

Saudi Aramco, officially known as the Saudi Arabian Oil Company, was established decades ago and has become the largest oil company in the world in terms of capital and market value. Aramco was listed on the Saudi financial market (Tadawul) in December 2019, achieving the largest initial public offering in history in terms of market value. Aramco's importance extends beyond being the primary oil source for the Kingdom; it has become a pillar of the Saudi economy, representing a significant portion of the Kingdom's GDP. The Saudi government relies on Aramco to support its development programs, finance Vision 2030 projects, and enhance local and global investments. The performance of Aramco's stock directly affects the main indicators of the Saudi market, such as the Tadawul All Share Index (TASI), reflecting the confidence of local and international investors in the Kingdom's economy. The company is also known for its stable dividend policies and high transparency in financial reporting, making it one of the most followed and analyzed stocks in both local and global markets.

The capital of Saudi Aramco is approximately 50 billion Saudi Riyals, distributed over 50 billion shares, with a nominal value of one Riyal per share. This means that the number of listed Aramco shares is 50 billion, a substantial figure that reflects the size of the company and its impact on the market. Upon its listing in the Saudi financial market, the Saudi government offered approximately 1.5% of these shares (equivalent to about 0.75 billion shares) in the initial public offering, while the majority of the shares (about 98.5%) remained owned by the Public Investment Fund. This large number of shares allows for high trading flexibility and enables widespread profit distribution among investors. Additionally, the large number of shares reflects the company's sustainability and its ability to attract various segments of investors both locally and globally. This capital size is among the largest listed in global financial markets, granting Aramco a strategic position in all financial indicators.

After Aramco's listing on the Tadawul market, the ownership distribution of shares is as follows: the Saudi government and the Public Investment Fund hold approximately 98.5% of the total shares, while the remaining percentage (1.5%) was offered for public subscription to individuals and institutions. This distribution reflects the government's desire to maintain strategic control over the company and ensure its financial and administrative stability. At the same time, the initial public offering provided an opportunity for local and foreign investors to participate in the company's ownership and benefit from dividend distributions. Aramco regularly discloses its ownership structure in its annual reports, enhancing transparency and trust among investors. This ownership distribution policy ensures the sustainability of the company's resources and allows the government to benefit from distribution returns to support the national economy and finance major projects.

The large number of Aramco shares forms the basis for how profits are distributed to shareholders. When the company announces annual or quarterly cash distributions, the return per share is calculated based on the total distributed profits divided by the number of outstanding shares (50 billion shares). In recent years, Aramco has committed to distributing substantial annual dividends ranging from 225 to 280 billion Saudi Riyals, equivalent to 60-75 billion US dollars annually. On a per-share basis, the minimum quarterly distribution has been around 1.05 Saudi Riyals per share. If we compare this with the market price of the share (for example, 34-35 Riyals), we find that the annual distribution yield exceeds 8%, one of the highest yields among listed companies. The large number of shares ensures fair and wide profit distribution among all shareholders, enhancing the attractiveness of the stock for long-term investment.

The market value of any company is determined by multiplying the current share price by the number of outstanding shares. For Aramco, having 50 billion shares makes the market value substantial even with slight changes in the share price. For example, if the share price is 35 Riyals, the total market value reaches 1.75 trillion Saudi Riyals. In periods when the share price exceeded 37 Riyals, the market value approached 1.9 to 2 trillion Riyals. This size positions Aramco among the world's leading companies in terms of market value. Additionally, this large number of shares provides flexibility in trading operations and helps stabilize the share price relatively compared to companies with fewer shares. The massive market value enhances Aramco's position in global indices and gives confidence to financial institutions and investors worldwide.

The number of Aramco shares differs significantly from most companies listed in the Saudi financial market. For instance, Hail Cement Company (3001) has a much smaller capital and a number of shares in the hundreds of millions only. While Aramco has 50 billion shares, most Saudi companies have shares ranging from several million to hundreds of millions. This difference is due to Aramco's massive capital size and its strategic role as a contributor to the Kingdom's economy. The large number of shares enables the company to implement broad dividend policies and offer diverse investment opportunities to investors. It is important for investors to understand this difference in the number of shares when comparing investment opportunities and assessing expected returns from each company.

The number of shares is directly related to several key financial indicators such as earnings per share (EPS), price-to-earnings ratio (P/E), and dividend yield. Earnings per share is calculated by dividing the company's net profits after taxes by the total number of shares. In the case of Aramco, due to the large number of shares, the earnings per share is relatively lower than that of smaller companies, but the overall return to shareholders remains high due to the size of the distributed profits. Additionally, the price-to-earnings ratio (P/E) reflects the relationship between the share price and its annual earnings, with Aramco recording a P/E ratio between 12-15 times in 2024, a moderate figure in the energy sector. The dividend yield remains high due to the substantial distributions, often exceeding 8%. These indicators help investors assess the strength of the stock and the sustainability of its profits.

Saudi Aramco was listed on the Saudi financial market (Tadawul) in December 2019, in the largest initial public offering in history. At the time of the IPO, the company offered about 1.5% of its total shares (approximately 0.75 billion shares out of 50 billion shares), and these shares were distributed among local and international individual and institutional investors. The government and the Public Investment Fund retained the overwhelming majority stake to ensure the strategic stability of the company. The size of the offering and the large number of shares attracted global interest and contributed to increasing liquidity in the Tadawul market. Since then, Aramco has not seen significant increases in capital or substantial changes in the number of shares, maintaining a stable ownership structure.

The number of Aramco shares directly impacts the main indicators in the Saudi financial market. Since Aramco represents a large percentage of the market value of the TASI index, any change in its share price strongly reflects on the overall market index. Additionally, the large number of shares contributes to high liquidity, allowing for large trades to be executed without significantly affecting the share price. This size of shares encourages institutional investors and index funds to include the stock in their investment portfolios, enhancing market stability. On the other hand, the limited distribution of shares available to the public (1.5%) may sometimes increase price volatility in the event of significant events.

In comparison, Hail Cement Company (symbol: 3001) has a significantly lower total number of shares than Aramco. The company's capital is distributed over hundreds of millions of shares only, making it a medium-sized company in the building materials sector. The share of Hail Cement traded in 2024 ranged between 10-15 Riyals, with a market value of only a few billion Riyals. This is reflected in the daily trading volumes and dividend distribution policies, which are less regular than those of Aramco. Additionally, the ownership distribution is more dispersed among individual and institutional investors. This comparison illustrates how capital size and number of shares affect the stock's dynamics in the market, the mechanism of profit distribution, and the assessment of investment opportunities.

Companies determine the number of issued shares based on several strategic factors, including the required capital size, growth requirements, and government policies related to ownership and investment. In the case of Aramco, the determination of capital and number of shares reflects the company's position as a key contributor to the Saudi economy, providing sufficient liquidity in the market and supporting government plans to diversify income sources. Additionally, the large number of shares allows for broad dividend distributions and accommodates the entry of new investors without affecting the ownership structure. On the other hand, smaller companies like Hail Cement maintain a lower number of shares that aligns with their business size and financing needs. It is important to note that any change in capital and number of shares requires approval from regulatory authorities and the Saudi Capital Market Authority.

In 2024 and 2025, Aramco continued to achieve strong financial results, supported by rising oil prices and increased global demand. These results reflected the company's ability to distribute additional dividends above the basic minimum, increasing the stock's attractiveness to investors. Aramco did not experience significant changes in the number of shares during this period, maintaining a stable capital structure. The company also enhanced its investments in new energy and refining projects and continued to implement governance and transparency policies in its financial reports. These data confirm that the large number of shares does not hinder growth but rather secures the continuity of expansion and the company's ability to respond to market challenges.

Understanding the number of issued shares is essential for any investor or financial analyst looking to evaluate a company's performance. The total number of shares affects the calculation of various indicators such as earnings per share (EPS), price-to-earnings ratio (P/E), and dividend yield. This understanding also helps in assessing market value and analyzing the impact of any change in the share price on the overall market index. For investors in Aramco, knowing the number of shares allows them to estimate the expected return from distributions and compare the stock's performance with other companies in the market, such as Hail Cement (3001). Furthermore, understanding this data enhances the ability to make informed investment decisions within the framework of the regulatory laws applicable in the Saudi financial market.