Underbooked

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Underbooked

Describes limited interest by prospective buyers in a new issue of a security during the preoffering registration period.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Underbooked

Describing a situation in which investors show a lack of interest in a new issue of a security. Before a new issue, underwriters canvass potential investors, who may or may not book an order to buy a portion of the new issue. If investors do not show interest, the security is said to be underbooked. This may affect the price when the security is actually issued. See also: Fully circled.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

underbooked

Of, relating to, or being a new security issue in which investment bankers find a general lack of interest among investors before the issue date.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
attributed the undersubscription to the banks' preference to hold on to their cash in view of the month-end liquidity requirements.
Rates of the Bangko Sentral ng Pilipinas' (BSP) term facilities rose across-the-board Wednesday despite the undersubscription in two of the three tenors.
de Leon said in a text message the market's appetite for higher rates included T-bills offered through the tap facility as Monday's auction was marked with undersubscription.
According to analysts at Cytonn Investments the undersubscription was attributed to tight liquidity in the interbank market, which saw average interbank rates increasing to 5.9 per cent from 4.7 per cent, the previous week.
The 14-day instrument drew P43.3 billion in bids from banks for the P40 billion that the BSP offered, reversing last week's undersubscription. The central bank accepted P40 billion in bids, with the yield rising to 3.9309 percent from last Wednesday's 3.8689 percent.
Yet Asia's aggregate undersubscription to the Court masks significant variation at the sub-regional level.
Charles Chao, the chief executive of Chinese online power Sina, Weibo's parent, shrugged off the undersubscription, saying it was mainly important to achieve the listing and establish Weibo's separate identity.
Charles Chao, the chief executive of Chinese online power Sina Corp, Weibo's parent, shrugged off the undersubscription, saying it was mainly important to achieve the listing and establish Weibo's separate identity.
Moreover, because the value per property share increasingly falls as additional ticket holders register with one and the same piece of property, any oversubscription or undersubscription of specific properties would be avoided or weeded out quickly.
This protects the issuer against undersubscription, which can occur if a large proportion of investors don't exercise their rights or if bad news causes the market price of the share to fall below the subscription price.
Undersubscription can also be a problem, unless the sponsor uses its own funds to close the transaction.
The yield on the benchmark 10-year Japanese government bond briefly hit a one-month low of 1.495 percent Wednesday on buying prompted by an extremely rare undersubscription of the Bank of Japan's JGB-buying operations during the day.