Saudi Aramco, IPO,
Saudi Aramco has boosted the size of its initial public offering, IPO by nearly $4 billion after selling millions of additional shares.

Saudi Arabia’s state-run oil giant said Sunday that it’s raised a record $29.4 billion after exercising a “greenshoe option” to sell 450 million more shares than originally planned. The option allowed the company to issue more shares to meet demand from investors.

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The extra shares “had been allocated to investors during the book-building process and therefore, no additional shares are being offered into the market today,” Aramco said.

Aramco initially raised $25.6 billion last month when it offered 3 billion shares worth 1.5 percent of the company. That number itself eclipsed the $25 billion record set in 2014 by Chinese e-commerce giant Alibaba.

Aramco’s share price quickly spiked in its first two days of trading on Saudi Arabia’s Tadawul stock exchange to give it the $2 trillion valuation sought by Crown Prince Mohammed bin Salman.

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But the stock has taken a hit in recent weeks amid mounting tensions in the Middle East. Aramco shares hit a low of 34 riyals, or $9.06, on Jan. 8 as markets grappled with the Jan. 3 US airstrike that killed Iranian Gen. Qassem Soleimani.

Aramco’s stock price traded down Sunday to about 34.7 riyals a share, or $9.25. Aramco’s market cap of about $1.85 trillion makes it the world’s most valuable company ahead of tech giant Apple at about $1.3 trillion.

Source: New York Post

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