Iranian missile attacks on US targets in Iraq push Saudi Aramco shares to their lowest level since their debut. This does not detract from the success of the world’s largest IPO.
The initial fears that Saudi Aramco’s IPO in December could turn out to be a flop have not materialized. On the contrary: in view of the high demand, the oil company even issues additional shares. As the Saudi company announced, another 450 million shares will be sold. The IPO now has a record volume of $ 29.4 billion.
The additional share package is an over-allotment option, also known as a greenshoe, which is more common with IPOs. The option states that shares can be issued in excess of the original volume if demand is high. Shortly after the stock market debut, Aramco had become the most valuable company in the world and had toppled Apple.
The Iranian missile attacks on US targets in Iraq also had little impact on the share price. On Wednesday, the paper briefly quoted 34 riyals ($ 9.06), around twelve percent lower than the debut at the stock exchange. At the same time, however, they remained above the issue price of 32 riyals.
On Sunday, the share price on the Riyadh stock exchange was again slightly higher at 35 riyal ($ 9.45). This gives Aramco a total value of $ 1.87 trillion.
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