oversubscription

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Oversubscription

The excess number of shares or bonds that investors want to buy but are not available due to high demand.

Oversubscription

A situation in which investors show so much interest in a new issue of a security that demand exceeds supply. Before a new issue, underwriters canvass potential investors, who may or may not book an order to buy a portion the new issue. If investors order more shares than there are shares being issued, the security is said to be oversubscribed. This may affect the price when the security is actually issued.

oversubscription

a situation in which the number of SHARES applied for in a new SHARE ISSUE exceeds the numbers to be issued. This requires the ISSUING HOUSE responsible for handling the share issue to devise some formula for allocating the shares. By contrast, undersubscription occurs when the number of shares applied for falls short of the number on offer, requiring the issuing house which has underwritten the shares to buy the surplus shares itself See CALLED-UP CAPITAL, PAID-UP CAPITAL.

oversubscription

a situation in which the number of SHARES applied for in a new SHARE ISSUE exceeds the numbers to be issued. This requires the ISSUING HOUSE responsible for handling the share issue to devise some formula for allocating the shares. By contrast, undersubscription occurs when the number of shares applied for falls short of the number on offer, requiring the issuing house that has underwritten the shares to buy the surplus shares itself. See CAPITAL MARKET.
References in periodicals archive ?
The Fund received total subscriptions (including over-subscription requests) for over 11 million shares of common stock, or approximately 186% of the shares available, totaling approximately $101 million.
Each holder of Rights may exercise their Over-Subscription Privilege only if such holder exercised their Basic Subscription Right in full.
The offering also includes an over-subscription privilege, which allows each rights holder that exercises all of its basic subscription privilege in full the right to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of shares among persons exercising this over-subscription right.
If there is an over-subscription, then customers with completed applications will be allocated a prorated portion of the available load.
The Fund received subscriptions (including over-subscription requests) for over 10.
Preliminary results indicate that the Fund received total subscriptions of approximately $83 million (including over-subscription requests and notices of guaranteed delivery) for 247% of the 3,739,154 shares available to be issued pursuant to the primary subscription.
Central time, on March 17, 2008, may purchase in connection with the exercise of its over-subscription privilege, as described in the Prospectus Supplement dated March 18, 2008 relating to Particle Drilling's previously announced rights offering.
25 per share pursuant to their basic subscription privilege and approximately 35,632,946 shares pursuant to their over-subscription privilege.
Preliminary results indicate that the Fund received subscriptions (including over-subscription requests) for about 300% of the 4,525,223 shares available to be issued pursuant to the primary subscription, totaling nearly $95 million.
The Fund's shareholders have subscribed, either through the primary subscription or the over-subscription privilege, for all 797,918 shares of common stock available in the rights offering.
The over-subscription privilege permits all record date shareholders who have fully exercised their primary subscription Rights to subscribe, subject to certain limitations and a pro-rata allotment, for any additional shares of common stock not purchased pursuant to the primary subscription.
Over-subscription requests totaled 11,246,059 shares or $51.