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Sun 12 Jan 2020 03:16 PM

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Saudi Aramco's world record-breaking IPO reaches $29.4 billion

The IPO relied heavily on individuals and high-net worth investors and funds from the Gulf

Saudi Aramco's world record-breaking IPO reaches $29.4 billion

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

Goldman Sachs Group, 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.

World's biggest IPO

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% to 35.05 riyals as of 10:11 a.m. in Riyadh, after retreating 0.4% for the week ended Jan. 9. It is trading almost 10% higher from the IPO price.