The Agricultural Bank of China has released the overallotment of H-shares associated with its $19.3 billion IPO, the company said on Thursday, a move that shows strong demand for the stock.
AgBank sold 25.4 billion shares at HK$3.20 at its Hong Kong IPO and sold 22.2 billion shares at 2.68 yuan in Shanghai. Its Hong Kong shares are trading at HK$3.58, while its Shanghai shares are trading at 2.84 yuan.
AgBank allocated $1.32 billion of extra shares for its Shanghai listing, and $1.58 billion for its Hong Kong deal.
After the greenshoes, AgBank has raised $22.1 billion, the largest IPO ever.
Over-allotments, known as greenshoes, are released when demand for the shares in the after market is heavy. Underwriters release the shares, set aside at the original IPO price, to the allocated holders who then become public stockholders.
That extra chunk of stock sold is added to the total proceeds of the IPO. Underwriters typically have 30 days to release or dissolve the greenshoe, depending on demand.
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