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Greenshoe, or over-allotment clause, is the term commonly used to describe a special arrangement in a U.S. registered share offering, for example an initial public offering (IPO), which enables the investment bank representing the underwriters to support the share price after the offering without putting their own capital at risk. [ 1 ] .
1 lut 2024 · A greenshoe option is a provision in an IPO underwriting agreement that grants the underwriter the right to sell more shares than originally planned. It is also known as an over-allotment option...
30 cze 2022 · A greenshoe option, also known as an “over-allotment option,” gives underwriters the right to sell more shares than originally agreed on during a company’s IPO. These provisions can help underwriters meet higher-than-expected demand up to a certain percentage above the original share number.
25 cze 2024 · A Greenshoe option is an over-allotment option. In the context of an initial public offering (IPO), it is a provision in an underwriting agreement that grants the underwriter the right to sell investors more shares than initially planned by the issuer if the demand for a security issue proves higher than expected.
22 wrz 2024 · A greenshoe is a clause included in the underwriting agreement of an initial public offering (IPO) that allows underwriters to buy up to an additional 15% of the company's covered short positions...
What is greenshoe? When an initial public offering is put forward, a greenshoe is a provision that may be included in the underwriting document. It gives the underwriter the option to sell investors more shares than originally planned by the issuer if demand is higher than expected.
An overallotment option, sometimes called a greenshoe option, is an option that is available to underwriters to sell additional shares during an Initial Public Offering (IPO).
