The over-allotment, and how the short gets closed calculator

The over-allotment, and how the short gets closed, worked through in your browser.

Interactive: the over-allotment, and how the short gets closedMedium

The bank sells more than the deal and is short from the first day. There are exactly two ways that short ends, and the market price picks which.

Base offer (m shares) Over-allotment % Offer price Market price now

Over-allotment shares: —
Total if exercised in full: —
Extra proceeds on exercise: —
What happens: —
Stabilisation result: —
Reading: —

Stabilisation is a regulated activity with its own disclosure and time limits in most markets. This computes the arithmetic, not the permission. Information and education only. Not advice, not a valuation, and not a quote for anything.

The idea behind it

This calculator belongs to Equity Capital Markets, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.

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The same in full — six points, and why each one matters

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Nothing here is tailored to you. This is written for a general audience. It does not consider your objectives, financial situation, knowledge, time horizon or tolerance for loss.
The examples are simplified. Worked examples use round numbers and leave out costs, spreads, taxes, collateral, settlement and market conventions that materially change real outcomes.
The models are teaching models. Formulas shown are standard textbook formulations. Institutions add calibration, live market data and credit, funding and capital adjustments — nothing here will reproduce a dealer’s quote or produce a valuation you can rely on.
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