Saudi Aramco’s record-breaking IPO grows to $29.4bn

Saudi Aramco’s record-breaking IPO grows to $29.4bn

Saudi Aramco’s record-breaking initial public offering (IPO) has grown to $29.4bn since the company chose to exercise the so-called greenshoe option to sell an additional 450 million shares on Sunday, the company said in a statement on the Saudi Stock Market (Tadawul).

The energy giant had listed 1.5 percent, or three billion, of the company’s shares on the Tadawul in early December. The company raised $25.6 billion, a record for world’s largest IPO in itself, pricing its shares at 32 riyals ($8.53).

The greenshoe option allows companies to sell additional shares after completing the IPO should there be enough demand from investors. Allocation of the shares was during the book building process, the company said in a statement.

“The allocation of 450,000,000 shares subject to the over-allotment option to investors was during the book building process. Therefore, there is no offering of additional shares into the market today,” Aramco said.

Aramco’s shares closed at SAR35 ($9.33) last Thursday, valuing the company at $1.87tn. So it continued its reign as by far the most valuable company in the world.