Aramco IPO value to rise to $29.4 bil with exercise of over-allotment option

Dubai — Saudi Aramco's IPO will now be valued at $29.4 billion with the exercise of the over-allotment option granted by the government in what is the world's biggest flotation.

Aramco had initially raised $25.6 billion by selling 3 billion shares priced at Riyals 32 ($8.53), but with the over-allotment option an extra 450 million shares will be added to the offering at the share price of Riyals 32, the company said Sunday in a statement on the local stock exchange, Tadawul.

"The 450,000,000 shares subject to the over-allotment option had been allocated to investors during the bookbuilding process and therefore, no additional shares are being offered into the market today," Aramco said.

Aramco's IPO, which came after two years of delay, beat the previous record held by Chinese e-commerce giant Alibaba, which raised $25 billion in 2014.

Aramco's shares are up by 9.4% since their December 11 listing.

The shares dipped slightly last week amid tensions between Iran and the US, stoking investor fears of war in the region.

Aramco's IPO is part of the kingdom's Vision 2030, a roadmap to weaning the kingdom off oil income.

--Dania Saadi, dania.el.saadi@spglobal.com

--Edited by Claudia Carpenter, claudia.carpenter@spglobal.com