In may of philips lighting after ipo announcement, the company has launched an announcement announced the exercise of the over-allotment option.

Reuters published earlier briefing has said that the company awarded the underwriters options, in order to obtain as much as $5625000 of additional common stock, the price of a share of 20 euros ($22.52).

Philips initial public offering of the number of shares they have subscribed for close to 28.75%, suggesting that philips will retain a 71.25% stake in the lighting business. The Dutch group shares lock-up period for six months.

The over-allotment option

Greenshoe, also called "green shoe". Refers to the issuer an option to lead underwriters, to receive the authorization of available excess, lead underwriters issue at the same price no more than 15% of the shares in the amount of lead underwriter namely by not exceeding 115% of the amount of shares to investors. In secondary underwriting part within 30 days from the date of the ipo, the main underwriter shall have the right to choose, according to the market situation, from a centralized competitive trading market to buy shares, the issuer or require the issuer to raise equity, assigned to this excess investors sold part of the application for subscription. Lead underwriters in the case of not use its own funds, through the exercise of over-allotment option, to balance the market supply and demand of the stock, have the effect of stability of the market price.

Over-allotment Option by the United States called Boston greenshoe manufacturing company in 1963 initial public offering (IPO) pioneered the use of the name, is commonly known as the over-allotment Option system, also called greenshoe Option (Green Shoe Option).