Resumen de Over-allotments options deconstructed.

Natalia Nicolaidis, Peter Castellon

• The article discusses how the provision of the over-allotment option to underwriters can contribute to equity offering stabilisation. Topics explored include the common misconception about the over-allotment option, the recording and facilitation of stabilisation transactions by underwriters, and the sale of over-allotted shares to investors. Brief details about the price of shares being sold in the aftermarket and the significant responsibilities of the stabilisation manager are presented.