PHILPS lighting exercise over allotment option

Following the May announcement of the initial public offering of PHILPS lighting, the company recently issued a notice to announce the exercise of the option of placing the excess.

Reuters earlier released a briefing has said that the company granted the Underwriters options to obtain up to $5625000 of additional issued ordinary shares, the price per share of 20 euros ($22.52).

PHILPS's initial public offering of shares close to 28.75%, indicating that PHILPS will retain its stake in the lighting business of 71.25%. Holland group's shares locked for a period of six months.

Over-allotment option

Over allotment option, also known as green shoes". Refers to the issuer granted an option underwriter, so authorized underwriter according to the same issue price does not exceed the amount of underwriting over sold 15% of the shares, the underwriter underwriting amount by no more than 115% of the shares sold to investors. In the part of the stock issuance underwriting listed within 30 days from the date of underwriters have the right to choose to buy the stock issuer from centralized auction trading market, or require the issuer to issue additional shares, assigned to this part puts forward the application of over sold investors. In the absence of the use of its own funds, the main underwriter, through the exercise of over allotment option, can balance the market supply and demand of the stock, play a role in stabilizing the market price.

The over allotment option by the United States called Boston Greenshoe manufacturing company IPO in 1963 (IPO), pioneered the use of the name, is commonly known as the over allotment option right, also called overallotment options (Green Shoe Option).

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