The AgBank is one step closer to becoming the world's biggest ever IPO. The lender said Thursday it has fully exercised an over-allotment option in Hong Kong, increasing the amount raised so far to 20.8 billion US dollars.
Analysts now expect AgBank to exercise the option for the Shanghai portion of its IPO as well, which will take total proceeds from the IPO to a record 22.1 billion US dollars. That will successfully help it surpass the 21.9 billion US dollars raised by ICBC.
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.