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 ?
Still, she cited the ample liquidity in the financial system - owing to the reduction in banks' reserve requirements and the redemption of P131 billion worth of government securities - which led to the oversubscription of the bond sale.
In the event that the oversubscription option is not fully exercised, the unused portion will be made part of the remaining volume that will have to be sold within a three-year period.
The first tranche floated FJD40 million to be offered, but the week-long tender saw an oversubscription that ballooned to more than double that amount, with FJD87.71 million subscribed.
In a disclosure to the Philippine Stock Exchange on Thursday, Megaworld announced that its board had approved this debt securities program with an initial issuance of fixed-rate bonds of up to P8 billion and an oversubscription option of up to P4 billion.
The facility was positively received and achieved a significant oversubscription. It was sole coordinated by First Gulf Bank PJSC, one of the leading banks in the UAE, with First Gulf Bank PJSC and Abu Dhabi Commercial Bank PJSC acting as Book runners and Mandated Lead Arrangers, Commercial Bank of Dubai PSC committing as Lead Arranger, and Emirates NBD Bank PJSC, Union National Bank PJSC, National Bank of Fujairah PJSC, Doha Bank QSC, Nomura International plc, HSBC Bank Middle East Limited, Commercial Bank International PLC, Malayan Banking Berhad (Maybank) and GarantiBank International N.V.
and upsize the issuance from RM1.5 billion to RM2.2 billion, representing an oversubscription of 1.8 times.
The proposed issuance was very well received by the market, with the order book closing at approximately $5.4 billion, representing 7.2 times oversubscription.
Global Banking News-1 December 2009-Greece's Alpha Bank registers oversubscription of rights issue(C)2009 ENPublishing - http://www.enpublishing.co.uk
Finnish energy company Neste Oil Corporation, formerly Fortum Oil Oyj, said on Tuesday (7 June) that the subscription of its notes 1/2005 and 2/2005 had been suspended due to oversubscription.
Data from the BSP showed oversubscription anew across all tenors on Wednesday, the second consecutive week all three tenors were oversubscribed.
'We continue to see oversubscription on both tenors as funds go back to the banking system after the holidays.
Due to the significant oversubscription, Ziraat Participation Bank increased the facility size to $155 million.