KHALEEJ TIMES, Monday, Jan 13, 2020 | Jamadi Al Awwal 18, 1441
Saudi Aramco raises IPO to record $29.4B
State-owned oil company Saudi Aramco said on Sunday it had exercised its
"greenshoe option" to sell an additional 450 million shares, raising the size of
its initial public offering to a record $29.4 billion.
Aramco initially raised a $25.6 billion, which was itself a record level, in its
December IPO by selling three billion shares at SR32 ($8.53) a share.
But it had indicated it could sell additional shares through the over-allotment
A greenshoe option, or over-allotment, allows companies to issue more shares in
an IPO when there is greater demand from participants in the initial offer.
Investors were allocated the additional shares during book-building, Aramco
"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 said.
Aramco shares fell to SR34 on January 8, its lowest since trading began on
December 11, but closed at SR35 on Thursday.
That valued Saudi Aramco at $1.87 trillion, above the IPO price.
On Sunday, the company's shares closed down 0.6 per cent to SR34.80.