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greenshoe

   Also found in: Wikipedia 0.01 sec.
greenshoe
An underwriting agreement provision that permits syndicate members to purchase additional shares at the original offering price. Shares in the greenshoe may consist of additional shares from the issuing company or may come from existing shareholders as a secondary offering. For example, the 2002 IPO of CIT Group included 200 million shares plus a greenshoe of 20 million additional shares that could be purchased by syndicate members at the $23 offering price within 30 days. Also called overallotment option.

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Schuit is currently partner with the Greenshoe Group, a management consulting firm in Portland, Maine, and is on the board of Maine Businesses for Social Responsibility.
We participated in the so-called secondary offering of NYSE Group shares and sold 181,940 shares (159,897 shares plus a greenshoe placement of 22,043), out of the 481,062 received as merger consideration.
The primary ADS offering of 6,156,250 ADSs (inclusive of the greenshoe option) aggregated to about US$ 119 million, net of underwriting commissions.
 
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