Dubai/London — Saudi Aramco shares surged after the oil producer’s initial public offering (IPO), valuing the company at a record $1.88-trillion in the culmination of a four-year effort by the kingdom to list its crown jewel.

The stock jumped the daily 10% limit to 35.20 riyals when trading began at 10.30am in Riyadh as Aramco board members, Saudi officials and invited guests cheered at a ceremony at the Fairmont Hotel in the kingdom’s capital...