Saudi Aramco ‘Greenshoe’ Kicks IPO Up to Record-breaking $29.4 Billion

A maze of crude oil pipes and valves pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, on June 9, 2016. Reuters/Richard Carson

State-owned oil company Saudi Aramco said on Sunday it raised the size of its initial public offering (IPO) to a record $29.4 billion by way of a so-called “greenshoe option.”

Also known as overallotment, a greenshoe lets a company issue more shares when demand is high during an IPO.