What is IPO oversubscription?

asked Monday, November 15, 2021

An initial public offering (IPO) is deemed to be oversubscribed when the number of shares that investors have applied for exceed the shares offered by the company. For instance, if a company has offered 100 shares and there are applications for 1,000 shares, then it means that an IPO was 10 times oversubscribed. In case of an oversubscription, the shares are allotted through a lucky draw.

answered Monday, November 15, 2021

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