Over-allotments options deconstructed.

• Autores: Natalia Nicolaidis, Peter Castellon
• Localización: International financial law review, ISSN-e 0262-6969, Vol. 33, Nº. 5 (Jun2014), 2014
• Idioma: inglés
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• Resumen

  • The article discusses how the provision of the over-allotment option to underwriters can contribute to equity offering stabilisation. Topics explored include the common misconception about the over-allotment option, the recording and facilitation of stabilisation transactions by underwriters, and the sale of over-allotted shares to investors. Brief details about the price of shares being sold in the aftermarket and the significant responsibilities of the stabilisation manager are presented.