Underwriter’s Cutback

Definition:

The ability of the Lead Manager to reduce the number of shares that are sold by Selling Shareholders in an IPO or follow-on offering. To reduce the likelihood of a Piggyback Registration Rights adversely affecting an offering, typically Piggyback Registration Rights are limited in case the Managing Underwriter concludes that the shares of the company in question cannot fit within the Public Offering without adversely affecting the offering.

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