The underwriter "shoe" is probably already "sold"!! I just read the underwriting portion of the prospectus under "Stabilization" and it allows the underwriter to sell short (regular) and sell short "naked" ahead of the offering!! The regular shorts would be the amount up to the shoe amount (i.e., the extra shares the underwriter can elect to take beyond the 5 million). The "naked" shorts would have to be covered by open market purchases to cover. So the underwriter probably has already sold short plenty in the low $20's, and gets to cover the shoe amount at $18.50. For any naked shorts, he has to cover in the open market, which will help keep the price above the $18.50 level. So price gets "stabilized" up to where they shorted it from. OMG! Welcome to OMG! land, people.
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