Saudi Aramco raises IPO to record $29.4 billion through greenshoe option
Aramco's Initial Public Offering Event
State-owned oil companySaudiAramcosaid on Sunday it has exercised its "greenshoeoption" to sell an additional 450 million shares, raising the size of its initial public offering (IPO) to arecord$29.4billion.
Aramcoinitially raised a then-record$25.6billionin itsIPOin December by selling 3billionshares at 32 riyals ($8.53) but indicated it may sell additional sharesthroughthe over-allotment of shares.
Agreenshoeoption, or over-allotment, allows companies to issue more shares in anIPOwhen there is greater demand from participants during the initial offering.
Investors were allocated the additional shares for theoptionduring the book-building process,Aramcosaid.
Aramcosaid "no additional shares are being offered into the market today and the stabilising manager will not hold any shares in the company as a result of exercise of the over-allotmentoption."
Aramcoshares have been volatile recently because of geopolitical concerns as tensions between the United States and Iran rose after President Donald Trump ordered a drone strike that killed a top Iranian commander and raised fears of war.
Shares ofAramcofell to 34 riyals on Jan. 8, its lowest since the stock began trading on December11, but closed at 35 riyals on Thursday.
Thursday's closing price valuedAramcoat $1.87 trillion, above theIPOprice, which valued the company at $1.7 trillion, but below Crown Prince Mohammed bin Salman's coveted $2 trillion target.