Saudi Aramco IPO at $29.4 Billion

Bloomberg Dubai | Updated on January 12, 2020 Published on January 12, 2020

File photo   -  Reuters

The final size of Saudi Aramco’s initial public offering (IPO) jumped one month after its debut in Riyadh.

Goldman Sachs Group Inc, one of the underwriters of the world’s biggest IPO, exercised the over-allotment option and increased the offering to $29.4 billion, according to a statement. It said 450 million additional shares were placed at 32 riyals ($8.53) with investors during the book-building process.

According to the terms of the offering, the bank could buy the additional shares during the stabilisation period that ended January 9 and give support to the stock, but no such transactions were undertaken during that interval. The IPO relied heavily on individuals and high-net worth investors and funds from the Gulf, with the Saudi government institutions investing almost $2.3 billion into the offering.

Aramco advanced 0.1 per cent to 35.05 riyals as of 10:11 am in Riyadh, after retreating 0.4 per cent for the week ended Jan. 9. It is trading almost 10 per cent higher from the IPO price.

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Published on January 12, 2020
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