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Saudi Aramco IPO tops $29 bln after over-allotment of shares

Jan 12, 2020
2 min read
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Saudi Aramco has allocated 450 million additional shares as part of its ‘over-allotment option’ that boosts its total initial public offering (IPO) value to US$29.4 billion.

Early in Dec., the energy giant raised $25.6 billion in a record listing, pushing Alibaba from the top place.

Saudi Aramco said no new shares have been issued for the over-allotment option as the shares were allocated to investors during the book building process - which also determines the IPO price. The option is kept in case there is a greater demand from investors during the IPO.

After listing at the top of the range of SAR 32 on Saudi Arabia Stock Exchange (Tadawul), Saudi Aramco shares were volatile amid Middle East tension but stayed above that price and closed at 35 riyals on Jan. 9.

Goldman Sachs, as the stabilising manager for the offering, had the option to purchase as much as 450 million shares of the total issued 3 billion shares if the share price required to do so during the first four weeks of the listing.  

Goldmas Sachs Saudi Arabia will not hold any shares in the company as a result of exercising the over-allotment option and it has not done any stabilisation in relation to the offering of Saudi Aramco shares, the bank’s Saudi unit said in a Saudi Aramco statement.


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