Latest / The Startup Exit Podcast with Fexingo: IPOs, Acquisitions, and Founder Liquidity Events
How Founders Use IPO Over-Allotment Options for Price Stability
In episode 100 of The Startup Exit Podcast, Lucas and Luna dive into the IPO over-allotment option, or greenshoe, a clause that lets underwriters sell extra shares to stabilize a new stock. Using the recent market volatility — Palantir up 5.2% in a week, Tesla down 7.5% — they show how greenshoes protect companies from post-IPO crashes. Lucas walks through the mechanics: how underwriters borrow shares, cover short positions, and buy back if the stock falls. They cite real-world examples like Meta's 2012 IPO wobble and Alibaba's record greenshoe exercise. The conversation ties to…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.