Posted on:

30 Mar 2024


Excess Over-allotment?

Doesn't greenshoe option lead to over allotment of Shares?

As during an ipo , the ib overallots the shares upto 15%, but if the share price increases, the ib has the right to excercise its option which the issuing company gives to the ib, doesnt this lead to excess over-allotment of shares in the spot market?

0 answers ( 0 marked as helpful)

Submit an answer