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AgBank's acceptance of online subscriptions from individual investors, comes after institutional investor subscriptions ended on Monday. The lender has adopted two mechanisms to ensure a relatively high price.
First is the strategic investors subscription mechanism, so Agbank's issuance-scale to the public is not as big. Another is the greenshoe mechanism, or over-allotment.
A greenshoe option is exercised to expand the offering by 15 percent. The greenshoe mechanism allows the bank to adjust its financing scale according to the market situation. It's an effective way to prevent a fall from the IPO price.
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