State-owned oil company&nbsp;<a href="https://www.wionews.com/business-economy/gulf-markets-plunge-on-us-iran-tensions-kuwait-lead-fall-272251">Saudi&nbsp;Aramco</a>&nbsp;said on Sunday it has exercised its "greenshoe&nbsp;option" to sell an additional 450 million shares, raising the size of its initial public offering (IPO) to a&nbsp;record&nbsp;$29.4&nbsp;billion.

Aramco&nbsp;initially raised a then-record&nbsp;$25.6&nbsp;billion&nbsp;in its&nbsp;IPO&nbsp;in December by selling 3&nbsp;billion&nbsp;shares at 32 riyals ($8.53) but indicated it may sell additional shares&nbsp;through&nbsp;the over-allotment of shares.

A&nbsp;greenshoe&nbsp;option, or over-allotment, allows companies to issue more shares in an&nbsp;IPO&nbsp;when there is greater demand from participants during the initial offering.

Investors were allocated the additional shares for the&nbsp;option&nbsp;during the book-building process,&nbsp;Aramco&nbsp;said.

Aramco&nbsp;said "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-allotment&nbsp;option."

Aramco&nbsp;shares have been volatile recently because of geopolitical concerns as tensions between the United States and Iran rose after President <a href="https://www.wionews.com/world/trump-warns-iran-against-massacre-as-protests-erupt-over-downing-of-ukrainian-airplane-273670">Donald Trump</a> ordered a drone strike that killed a top <a href="https://www.wionews.com/world/thousands-of-iraqis-rally-against-government-iran-and-us-273470">Iranian commander</a> and raised fears of war.

Shares of&nbsp;<a href="https://www.wionews.com/business-economy/global-markets-oil-gold-safe-haven-assets-gains-as-us-strike-kills-iranian-commander-271901">Aramco</a>&nbsp;fell to 34 riyals on Jan. 8, its lowest since the stock began trading on December&nbsp;11, but closed at 35 riyals on Thursday.

Thursday's closing price valued&nbsp;Aramco&nbsp;at $1.87 trillion, above the&nbsp;IPO&nbsp;price, which valued the company at $1.7 trillion, but below Crown Prince <a href="https://www.wionews.com/business-economy/saudi-kuwait-signed-an-agreement-to-resume-joint-oil-output-270025">Mohammed bin Salman's</a> coveted $2 trillion target.

State-owned oil company Saudi Aramco said on Sunday it has exercised its "greenshoe option" to sell an additional 450 million shares, raising the size of its initial public offering (IPO) to a record $29.

State-owned oil company Saudi Aramco said on Sunday it has exercised its "greenshoe option" to sell an additional 450 million shares, raising the size of its initial public offering (IPO) to a record $29.4 billion. Aramco initially raised a then-record $25.6 billion in its IPO in December by selling 3 billion shares at 32 riyals ($8.53) but indicated it may sell additional shares through the over-allotment of shares. A greenshoe option, or over-allotment, allows companies to issue more shares in an IPO when there is greater demand from participants during the initial offering. Investors were allocated the additional shares for the option during the book-building process, Aramco said. Aramco said "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-allotment option." Aramco shares 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 of Aramco fell to 34 riyals on Jan. 8, its lowest since the stock began trading on December 11, but closed at 35 riyals on Thursday. Thursday's closing price valued Aramco at $1.87 trillion, above the IPO price, which valued the company at $1.7 trillion, but below Crown Prince Mohammed bin Salman's coveted $2 trillion target.

Saudi Aramco raises IPO to record $29.4 billion through greenshoe option

Saudi Aramco shares gained for a third consecutive day on Sunday, rising 1.63% to 37.4 Saudi riyals ($9.97), pushing the company's value back towards the $2 trillion level it topped last week.

The state-owned oil company listed 1.5% of its shares at 32 riyals on Riyadh's Tadawul exchange on Dec 11 in the world's largest initial public offering (IPO).

Initially valued at $1.7 trillion, the shares topped $2 trillion, a value long sought by Saudi Crown Prince Mohammed bin Salman, last Thursday.

The IPO is the centrepiece of the Saudi leader's plans for diversifying the economy away from its dependence on oil.

The additional demand, particularly from "passive" investors, is expected this week, as Aramco's shares will join the Tadawul index and global benchmarks such as MSCI.

Aramco is the world's largest and most profitable company, but its valuation faced scepticism among international investors as the IPO was marketed.

Analysts at Bernstein last week put its value at $1.36 trillion, citing corporate governance concerns due to the fact that the government owns 98.5% of the firm.

Saudi Aramco shares gained for a third consecutive day on Sunday, rising 1.63% to 37.4 Saudi riyals ($9.97), pushing the company's value back towards the $2 trillion level it topped last week.

Saudi Aramco shares gained for a third consecutive day on Sunday, rising 1.63% to 37.4 Saudi riyals ($9.97), pushing the company's value back towards the $2 trillion level it topped last week. The state-owned oil company listed 1.5% of its shares at 32 riyals on Riyadh's Tadawul exchange on Dec 11 in the world's largest initial public offering (IPO). Initially valued at $1.7 trillion, the shares topped $2 trillion, a value long sought by Saudi Crown Prince Mohammed bin Salman, last Thursday. The IPO is the centrepiece of the Saudi leader's plans for diversifying the economy away from its dependence on oil. The additional demand, particularly from "passive" investors, is expected this week, as Aramco's shares will join the Tadawul index and global benchmarks such as MSCI. Aramco is the world's largest and most profitable company, but its valuation faced scepticism among international investors as the IPO was marketed. Analysts at Bernstein last week put its value at $1.36 trillion, citing corporate governance concerns due to the fact that the government owns 98.5% of the firm.

Saudi Aramco shares up 1.6% in third consecutive day of gains

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Saudi Aramco raises IPO to record $29.4 billion through greenshoe option

Saudi Aramco shares up 1.6% in third consecutive day of gains