By Innovation-sa on January 19, 2020 in News
Saudi Arabia’s oil giant Saudi Aramco raised the size of its initial public offering (IPO) to a world record-breaking $29.4 billion, by selling an additional 450 million shares making use of its “greenshoe option”, the company said in a statement on the Saudi Stock Market (Tadawul).
The greenshoe option,or over-allotment, permits companies to sell additional shares in an IPO when there is greater demand from investors during the initial offering. The additional shares have already been allocated during the book-building process and no additional shares are being sold in markets today, said Aramco.
During the IPO in December, Aramco raised $25.6 billion, which itself was a record breaking amount, by selling 3 billion shares at 32 riyals but indicated that it could sell additional shares through the over-allotment of shares.
The state-owned oil company’s shares closed at 35 riyals last Thursday, valuing the company at $1.87 trillion and still holding its position as the world’s most valuable company in the world.