Via Greenshoe Option, Saudi Aramco IPO Reaches $29.4 Billion

Posted on 01/12/2020

In December 2019, Saudi Aramco raised a record US$ 25.6 billion in its initial public offering (IPO), selling 3 billion shares on the Tadawul stock exchange. The state-owned energy giant has a greenshoe option. A greenshoe option permits companies to issue additional shares in an IPO where there is greater demand from participants during the IPO. Saudi Aramco exercised the greenshoe option to sell an additional 450 million shares, thus raising the IPO to a record US$ 29.4 billion. Goldman Sachs was selected as the financial advisor to manage the placing of additional shares.

On another note, a venture unit of Saudi Aramco called Saudi Aramco Energy Ventures is planning to form a US$ 500 million investment fund to target investments in the technology sector. Some of the investments could be in China.