Price stabilisation via green shoe option preserves post-listing price while imposing specific procedural and reporting obligations. Price stabilisation via a green shoe option requires shareholder authorisation, appointment of a lead manager as stabilising agent, pre-filing agreements with the stabilising agent and lenders, and limits over-allotment to fifteen per cent. Borrowed securities must be dematerialised and allocated pro rata. The stabilising agent determines purchase timing, quantity and price during a maximum thirty-day period, operates special bank and depository accounts, returns purchased securities within two working days after stabilisation, and if purchases are insufficient the issuer must allot securities at issue price within five days. The agent must remit monies, report daily and finally, transfer residual funds to the Investor Protection and Education Fund, and retain a three-year register.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Price stabilisation via green shoe option preserves post-listing price while imposing specific procedural and reporting obligations.
Price stabilisation via a green shoe option requires shareholder authorisation, appointment of a lead manager as stabilising agent, pre-filing agreements with the stabilising agent and lenders, and limits over-allotment to fifteen per cent. Borrowed securities must be dematerialised and allocated pro rata. The stabilising agent determines purchase timing, quantity and price during a maximum thirty-day period, operates special bank and depository accounts, returns purchased securities within two working days after stabilisation, and if purchases are insufficient the issuer must allot securities at issue price within five days. The agent must remit monies, report daily and finally, transfer residual funds to the Investor Protection and Education Fund, and retain a three-year register.
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