Greenshoe Option Helps China's Agricultural Bank Raise $22B

The Agricultural Bank of China Ltd has raised a total of $22.1 billion from its dual listing in Hong Kong and Shanghai to $22.1 billion, beating the record held by Industrial & Commercial Bank of China Ltd. for its $21.93 billion IPO in 2006, reports the Wall Street Journal.

 

Agbank exercised the overallotment option—also known as a greenshoe—after struggling to stir interest among investors.

 

The overallotment option is a tool used by underwriters to limit volatility in a stock's price for a month after it lists. Prior to listing in Shanghai, AgBank said it had sold 15% more shares than it planned to issue in the IPO, notes the Journal.
 

Read more on

Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern