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 ?
Accordingly, the shares issued as part of the over-subscription privilege of the rights offering will be allocated pro-rata among record date shareholders who over-subscribed based on the number of rights originally issued to them by the Fund.
Immotion (LON:IMMO) has raised [pounds]370,000 more from its fund raise yesterday after an over-subscription broker option was exercised.
According to Computershare Trust Company, the subscription agent for the rights offering, as of the expiration date, 68,604,395 basic subscription rights were exercised to purchase an aggregate of 47,218,016 shares of common stock and 303,590,241 additional shares of common stock were subscribed for under the over-subscription right, subject to proration.
Given the over-subscription, Sequoia Economic Infrastructure has undertaken "a scaling back exercise".
Under the section, Over-Subscription Criteria, the draft arrangements say: "Where more parents/carers have expressed a preference for a particular school than the admission number, the local authority must apply its over subscription criteria in deciding which parents/carers preferences can be met."
The official said there was scope for retaining more over-subscription, but that could have meant government stake in some CPSEs falling to 53 percent.
Holders of rights who exercise their basic subscription rights in full will also have an over-subscription privilege, pursuant to which they may subscribe to purchase additional shares at the subscription price to the extent that not all basic subscription rights are exercised by other rights holders, subject to certain limitations and as more fully described in a prospectus supplement relating to the rights offering.
Al Khaliji has witnessed more than three times over-subscription to its $500mn five-year senior unsecured bond, indicating the strong appetite of global investors in Qatar.
The company said P4 billion of the amount is for its primary offering and the rest as its over-subscription option.
KUWAIT -- Watani Investment Company (NBK Capital) and Integrated Holding Company (IHC) -- the largest crane operator in the Middle East focused on the oil, gas and energy sectors - announce the successful closing of the private placement of 35 percent of the company's capital, with over-subscription exceeding 230 percent.
MCB said the book-building process had concluded on 24th January at a strike price of Rs26 per share and participation of 30,418,770 against a total issue size of 29,143,000 was witnessed, resulting in over-subscription of 1.044 times.
The launch amount of the transaction was $200 million but the commitments received amounted to the equivalent of $332 million, a 150 per cent over-subscription level, demonstrating the strong international appetite for TDB's name, state-run agency WAM said in a report.