Investing.com - Saudi Aramco (SE:2222) sold 450 million more shares through a “greenshoe option,” according to a company statement on Sunday.
A greenshoe option, formally known as an over-allotment option, is a special arrangement in an IPO that enables companies to issue more shares in the offering when there is more-than-expected demand from participants.
Investors were allocated the additional shares for the option during the book-building process, the Saudi-listed state owned said in the statement.
“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 initially raised a then-record $25.6 billion in its IPO in December by selling 3 billion shares.
The company’s shares last traded at 34.80, down 0.6%. They fell to their lowest level since its IPO on Jan. 8 amid tensions between the U.S. and Iran.