A lot of info on the internet how this works It
Post# of 32643
It basically trumps shorter's hand
Brilliant
https://www.investopedia.com/articles/optioni...on-ipo.asp
The underwriter acts as a liaison, like a dealer, finding buyers for their client's newly-issued shares.
Sellers (company owners and directors) and buyers (underwriters and clients).determine a share price.
Once the share price is determined, they're ready to trade publicly. The underwriter then uses all legal means to keep the share price above the offering price.
If the underwriter finds there's a possibility that shares will fall below the offering price, they can exercise the greenshoe option.