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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
California-based Saratoga Group has announced the closing of its over-subscribed Qualified Opportunity Fund (QOF), the company said.
A POPULAR - and over-subscribed - group for people over 60 in Lindley celebrated its 10th anniversary.
Steve Charmley, cabinet member for assets, economic growth and regeneration said: "Though this is disappointing, it's not surprising given that the fund was hugely over-subscribed, and our feeling is that Shrewsbury and Oswestry were considered to already have stronger high streets than those towns that have gone forward."
A $1.25 billion 10-year debut sukuk of Saudi Telecom, which is 70 per cent owned by the Public Investment Fund (PIF), was over-subscribed nearly 4 times and the pricing was 20 basis points tighter than the initial guidance.
The two-day book building process was over-subscribed by 1.37 times with price closing at Rs.
New Delhi: In Coal India, government's 3 percent stake sale got over-subscribed Thursday, which will fetch at least Rs 5,000 crore to the exchequer.
The council says this is because their preferred schools have been over-subscribed or the application has not been made properly.
The Offer was over-subscribed. Assuming the over-subscription privilege is exercised in full, the gross proceeds of the Offer are expected to be approximately $67.8M.
AN over-subscribed school has shrunk its catchment area to children who live within just 100 yards.
The most over-subscribed school is Pontprennau, which had 98 applications for 60 places, followed by Marlborough Road with 94 applications for 60 places.
M2 PHARMA-April 5, 2018-Marapharm Ventures concludes over-subscribed financing of units