Saudi Aramco’s 2019 initial public offering became the largest in history after an overallotment option.
Saudi Aramco listed shares on the Saudi Exchange in December 2019. The offering initially raised about $25.6 billion, and the exercise of an overallotment, or greenshoe, option increased the total to about $29.4 billion. That surpassed Alibaba’s 2014 offering.
The company is formally Saudi Arabian Oil Company and is majority owned by the Saudi government. It operates one of the world’s largest integrated oil businesses, spanning exploration, production, refining, chemicals, and distribution.
IPO proceeds and market capitalization are different measures. Proceeds are the money raised by selling shares, while market capitalization is the value of all outstanding shares at a particular price. Saudi Aramco’s listing therefore set both a major IPO record and a notable market-value benchmark.