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.


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