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What happens if IPO is fully subscribed?

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When an IPO is fully subscribed, not all investors may receive an allotment.

The allotment in a fully subscribed or oversubscribed IPO is done on proportionate or lottery based on the level of oversubscription and investor category.

A fully subscribed IPO occurs when all offered shares are sold to investors. This is a good sign for an issuer whose IPO is attracting great interest from investors.


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