ABC online release ends green shoe mechanism to secure IPO price

Yesterday is the Agricultural Bank online purchase date and the net purchase payment deadline day, and AgBank will determine the final issue price, the excess placing and the repayment arrangement today.　　According to sources, the IPO price will be no suspense today to be identified as 2.68 yuan/share, "green shoes" mechanism to secure the issue price. From close to the AgBank IPO insiders learned that the ABC IPO network under the "magnification" of nearly twice times, the purchase price will undoubtedly be determined in the price range of the upper limit. ABC's initial enquiry range is 2.52 yuan/share-2.68 yuan/share, so the IPO price of ABC will likely be identified as 2.68 yuan/share.　　and institutional investors under the network of the enthusiasm of the subscription, yesterday, the purchase of retail enthusiasm in the last moment was ignited. After a A-share, H-shares have been more ideal subscription multiples, whether the ABC will break has become a focus of investors.　　However, many people in the industry believe that the IPO price range is lower than market expectations, and the "green shoe" mechanism to ensure that the break is unlikely. The "green shoe" mechanism is also known as the "oversubscribed option", whereby AgBank's co-underwriters can offer investors an excess of 15% of their initial issuance in accordance with the current issue price.　　The shares will be made available through deferred deliveries to some of the strategic investors involved in the subscription, and all to the online investors. If the main underwriter in accordance with the 15% ceiling to the Internet investors to carry out the excess placements, the agricultural Bank a share of the online distribution will be increased by up to 3.335 billion shares, the total size of the issue will increase to 25.571 billion shares.　　And the main underwriter can be listed in the Agricultural Bank of China within 30 natural days, the use of excess placement of shares of funds obtained from the two-level market to buy Agricultural bank shares, to stabilize future, but the cumulative number of buy shares must not exceed the number of shares. This means that if AgBank announces the launch of the green Shoe mechanism, the main underwriter will be able to buy AgBank's shares for the market once it has fallen below its IPO price.　　According to the excess placing limit of 15%, the issue price final positioning of 2.68 yuan per share calculation, the main underwriter can obtain a maximum of 8.938 billion yuan, for the Agricultural Bank after the listing of one months to stabilize the stock prices. From insiders involved in AgBank's IPO, the bank's launch of the "green shoe" mechanism was almost certain, which would guarantee AgBank's "soft landing" in the A-share market.