Amarin Corp Plc (AMRN)

[IslandOfMisfitToys]

sts66, the greenshoe isn't supposed to just be a freebie extra for the underwriters, it has a stock stabilization purpose, as I understand:

AMRN won't pocket $440M, it's be $420M if the shoe is exercised - someone said the secondary last Nov did not have the shoe exercised, and if that's true again it's not a good sign. BTW, if JT really did say the last one was sold out in an hr, why wasn't the shoe bought too? You'd think if there was such a high demand buyers would have wanted every share they could get.

The greenshoe enables them to oversell the offering (by up to 15%), and then buy back shares to stabilize the price once issued.

If the market price is below the offering price, they just buy back the 15% of shares in the open market, which is profitable for them, and the demand supports the post-offering price.

If the market price is exceeding the offering price, they buy shares out of the greenshoe at the offering price, and deliver them against their shorts at the higher market price (which is also profitable for them).

So it's not just an "oh look, the stock is at $22 now, let's go get our free money". They go get shares to cover pre-share-release short positions.