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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

You are viewing the version of the document as on 2021-01-01.

Status: In this content, we have included all amendments made by EU exit-related instruments up to end September 2020. There will be more amendments to be made later this year, further to the September QCP.

Article 8 Conditions for ancillary stabilisation

Ancillary stabilisation shall be undertaken in accordance with Articles 6 and 7 and comply with the following conditions:

  1. (a)

    securities shall be overallotted only during the subscription period and at the offer price;

  2. (b)

    a position resulting from the exercise of an overallotment facility by an investment firm or credit institution which is not covered by the greenshoe option shall not exceed 5 % of the original offer;

  3. (c)

    the greenshoe option shall be exercised by the beneficiaries of such an option only where the securities have been overallotted;

  4. (d)

    the greenshoe option shall not amount to more than 15 % of the original offer;

  5. (e)

    the period during which the greenshoe option may be exercised shall be the same as the stabilisation period pursuant to Article 5;

  6. (f)

    the exercise of the greenshoe option shall be disclosed to the public promptly, together with all appropriate details, including in particular the date of exercise of the option and the number and nature of securities involved.