What is a put-back option (right to request repurchase)?

A put-back option is the right of retail subscribers who were allocated IPO shares to sell those shares back to the underwriter within a certain period after listing.

It is granted in cases set out in the regulations, such as when the offer price was set as a single price without book-building, when the basis for the offer price was not stated, or for listings of companies that are not yet profitable or are listed on the strength of their business model. If the option is exercised, the underwriter must in principle buy back the shares at 90% or more of the offer price, and the exercise period varies by case, such as 1, 3 or 6 months from the listing date.