Lago acts as a stabilisation manager with a great deal of experience.
The IPO-company can use an over-allotment option that allows the underwriters to sell an additional amount of shares, up to 15 %, of the original IPO issue amount. If exercised, the over-allotment shares will be used to defend the IPO price by the appointed stabilising manager during the first 30 calendar days after the trading has commenced. Price stabilisation can only be made at the IPO price or below, never above.
The IPO company will issue an option (greenshoe option) to the stabilising manager for the over-allotment share amount that can solely be used by the stabilising manager to cover the over-allotment. The option can be exercised to subscribe shares in full or in part.
If no price stabilisation trades are made, the option is fully exercised, the IPO company will receive additional funds. If price stabilisation has occurred, and all of the over-allotment shares are bought from the market, the option will not be used. In this case the IPO company will not receive any additional funds.
Lago will incorporate in-house developed algorithms, which have been extensively proven in the market, for the best possible outcome.
Price Stabilisation and Greenshoe Option in brief
Up to 15 %
Over-allotment of the original IPO issue amount.
30 calendar days
Stabilisation period after the trading has commenced.
At or below the IPO price
Price stabilisation can only be made at the IPO price or below, never above.
Recent transactions
All transactions
Greenshoe option and stabilisation
IPO 50M SEK
March 2023
Frequently asked questions
What is a greenshoe option?
The IPO company issues an option (greenshoe option) to the stabilising manager for the over-allotment share amount, which can solely be used by the stabilising manager to cover the over-allotment. The option can be exercised to subscribe shares in full or in part.
How large can the over-allotment be?
The over-allotment option allows the underwriters to sell an additional amount of shares, up to 15 %, of the original IPO issue amount.
How long does price stabilisation last?
The over-allotment shares are used to defend the IPO price by the appointed stabilising manager during the first 30 calendar days after the trading has commenced.
At what price can stabilisation be made?
Price stabilisation can only be made at the IPO price or below, never above.
What happens if no stabilisation trades are made?
If no price stabilisation trades are made, the option is fully exercised and the IPO company will receive additional funds. If all of the over-allotment shares are bought from the market, the option will not be used and the IPO company will not receive any additional funds.
