I am perplexed by this statement taken from the news of the offering of 12 March 2018, which has curiously now been removed from the Company website.  One wonders why? It bothered me a little at the time but in retrospect it bothers me a lot.

'The Underwriter also has an option to purchase up to an additional 2,181,815 Units at the offering price (representing 15% of the Offering) on the Closing Date for market stabilization purposes and price to cover over-allotments for a period of 30 days after the date of Closing.'

Bearing in mind that a number of posts have remarked something along the lines of  ‘ the price is being driven down by late selling at house 22’ or words to that effect. Could this be the company acting to stabilise the market i.e. the share price or is this just a boilerplate statement of Public Offerings?

I should be most grateful if those here with more expertise in the working of markets would explain what stabilisation involves, is it intended to maintain the sharprice at a particular price and additionally, given the 30 day  life of the ‘stabilization purposes’ does it end on 20 Apr 18?

Sula