Green shoe option

Why does the company go for green shoe option when the demand is more than the supply in cases of IPOs. If the demand is really high, issuing more shares would dilute the demand? Wouldn’t it?

By not issuing more shares, and keeping the demand high, the stock price of the share could go high? Is that not what a company would ideally want? So why to issue more shares?

it’s really complex to understand this things :joy: this article explains greenshoe option perfectly…