KUALA LUMPUR: Maybank Investment Bank has announced that it has been granted an over-allotment option comprising up to 225.15 million shares for the upcoming initial public offering (IPO) of Big Caring Group Bhd (BCG).
In a Bursa Malaysia filing by BCG, Maybank IB stated that BCG’s shares may be subject to stabilising action following the IPO. The option is designated strictly for the purpose of covering any over-allotments of shares during the IPO.
The maximum threshold represents exactly 12.0 per cent of the total number of shares offered under the IPO.
The stabilisation period will officially commence on Nov 19, the listing date of BCG on the Main Market of Bursa Malaysia. According to the announcement, Maybank IB’s mandate to stabilise the share price will remain active until the earlier of two specific milestones:
The date falling 30 days from, and including, the official listing date; or
The date when the stabilising manager has successfully purchased the full aggregate limit of 225.15 million shares on the open market.
The mechanism is designed to prevent or slow a decline in the market price of the shares following their debut, providing early market stability for incoming investors.