Lagos — Saudi Aramco has said it will sell an additional 450 million shares.
The announcement came after its shares fell to the lowest since trading in December- its shares fell to 34 riyals on Jan. 8 but closed at 35 riyals on Thursday.
Although Thursday’s closing price at $1.87 trillion was above stated IPO price but below Saudi’s Prince, Mohammed bin Salman’s $2 trillion target.
The statement said the firm was taking a “greenshoe option” to make an extra sale, now increasing its initial public offering, IPO to $29.4 billion from an initial $25.6 billion.
A greenshoe option, or over-allotment, allows companies to issue more shares in an IPO when there is greater demand from participants in the initial offer. Investors were allocated the additional shares during book-building, Aramco said.
“No additional shares are being offered into the market today and the stabilizing manager will not hold any shares in the company as a result of exercise of the over-allotment option,” Aramco said in a statement on Sunday.