Green shoe option stabilisation permits over allotment and market purchases to stabilise the post listing price within defined procedures. The regulation authorises a green shoe option for post listing price stabilisation where the issuer obtains shareholder authorisation, appoints a lead manager as stabilising agent, and enters pre issue agreements detailing terms and borrowing of specified securities. Over allotment up to fifteen percent may be determined by the lead manager with the stabilising agent and must be disclosed. The stabilising agent directs market purchases within a thirty day stabilisation period, operates special bank and depository accounts, returns bought securities to lenders, and, if purchases are insufficient, causes the issuer to allot securities at issue price to cover shortfalls.
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.
Green shoe option stabilisation permits over allotment and market purchases to stabilise the post listing price within defined procedures.
The regulation authorises a green shoe option for post listing price stabilisation where the issuer obtains shareholder authorisation, appoints a lead manager as stabilising agent, and enters pre issue agreements detailing terms and borrowing of specified securities. Over allotment up to fifteen percent may be determined by the lead manager with the stabilising agent and must be disclosed. The stabilising agent directs market purchases within a thirty day stabilisation period, operates special bank and depository accounts, returns bought securities to lenders, and, if purchases are insufficient, causes the issuer to allot securities at issue price to cover shortfalls.
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