The Over-Allotment Option: How Greenshoe Provisions Shape Venture Capital Rounds and IPOs

Managing Demand and Stabilizing Prices: How the Over-Allotment Option Enhances VC and IPO Success

Dear Subscribers,

Welcome to the latest edition of the HealthVC newsletter! Today, we’re taking an in-depth look at the powerful yet often-overlooked Over-Allotment Option—also known as the Greenshoe Option. Essential for both VC rounds and IPOs, this provision offers the flexibility to issue additional shares and helps stabilize pricing in high-demand m…