The proceeds from Saudi Aramco's record initial public offering have risen to $29.4 billion after the oil company exercised an option to sell 15% more stock, an executive at one of the banks leading the deal told Al Arabiya news channel

Wassim Al Khatib, head of investment banking at the investment arm of Saudi Arabia's biggest bank, National Commercial Bank , said the state-controlled oil giant had exercised the so-called over-allotment option.

Aramco sold $25.6 billion of shares at 32 riyals each, the top of the range at which they were marketed, and the company had orders for $119 billion of stock. About 4.9 million individual investors, almost 15 per cent of the kingdom’s population, applied for the shares. Saudi Arabia sold only 1.5 per cent of the company’s capital in the IPO

“I see further upside to the stock after listing due to the fact that investors will be chasing the stock to complete their exposure, since the deal was oversubscribed,” said Ali El Adou, head of asset management at Daman Investiments in Dubai

Saudi Aramco is now the world's most valuable company with a market valuation of $1.7 trillion after its initial public offering (IPO) raised $25.6 billion

Saudi Aramco shares will start trading on Dec. 11, the Saudi securities exchange Tadawul said in a statement on Friday.

Aramco priced its IPO at 32 riyals ($8.53) per share, the top of its indicative range, raising $25.6 billion and beating Alibaba's record $25 billion-listing in 2014

The listing is expected later this month on the Riyadh stock exchange, but it still falls short of the towering $2 trillion valuations long sought by Crown Prince Mohammed bin Salman.

"The amount raised by the IPO itself is relatively contained given the size of the economy and medium-term funding requirement of the transformation plan. But combined with other areas of funding we believe that there is meaningful capital in place to progress with the investment plans aimed at diversifying the economy," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.