• MKT 6.2.11 MKT 6.2.11 Conditions for Ancillary Stabilisation

    In order to benefit from the exemption provided for in the FSMR, Ancillary Stabilisation must be undertaken in accordance with Rule 6.2.8 of this Regulation and with the following:

    (1) Relevant Securities may be over allotted only during the subscription period and at the Offer price;
    (2) a position resulting from the exercise of an Overallotment Facility by a Reporting Entity which is not covered by the Greenshoe Option may not exceed 5% of the original Offer;
    (3) the Greenshoe Option may be exercised by the beneficiaries of such an option only where Relevant Securities have been over allotted;
    (4) the Greenshoe Option may not amount to more than 15% of the original Offer;
    (5) the exercise period of the Greenshoe Option must be the same as the Stabilisation period required under Rule 6.2.8; and
    (6) the exercise of the Greenshoe Option must be disclosed to the public promptly, together with all appropriate details, including in particular the date of exercise and the number and nature of Relevant Securities involved.

    • Guidance

      The Stabilisation Manager may often be the lead manager in respect of an Offer, and can therefore over-allot Relevant Securities in the initial allocation and then facilitate the stabilisation by purchasing Relevant Securities during the Stabilisation Window. A Stabilisation Manager and his Stabilisation Agents may also sell short on the market to facilitate Price Stabilisation or in order to close out or liquidate positions established by Price Stabilisation.