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 ?
We determined oversubscription was both economically inefficient and couldn't keep pace with traffic growth, resulting in poor performance," Baudet says.
VKernel's new white paper, "Best Practices for Oversubscription of CPU, Memory and Storage in vSphere Virtual Environments," discusses methods for effectively managing oversubscription of CPU, memory and storage resources.
Within some statistical bounds, bandwidth oversubscription is a legitimate way to increase network use without necessarily compromising the quality of the service.
Liberty expects the subscription agent to distribute the shares purchased in the rights offering, the refund checks for unfulfilled oversubscriptions and the checks for the sale of proceeds of rights sold by the subscription beginning on or about Tuesday, October 16, 2012.
Tetangco noted that 'there continues to be demand for the shorter-dated papers,' which 'was also reflected in the oversubscription and tap of the three-year bond auction by the Bureau of the Treasury.
The demand and oversubscription in the facility was a clear sign of confidence to the Ziraat trademark and the Turkish economy.
The Dubai Government has recorded over three times oversubscription of its latest Islamic bond offer (sukuk) worth $750 million (Dh2.
Global Banking News-1 December 2009-Greece's Alpha Bank registers oversubscription of rights issue(C)2009 ENPublishing - http://www.
non-convertible, peso-denominated perpetual preferred shares sold at P1,000 each with an oversubscription option of up to four million shares.
FGB has completed its $1 billion three-year loan facility on September 7th, 2015, which has achieved an oversubscription of around 33 per cent from its initial launch amount of $750 million.
The company said that all 31,240,472 shares, subject to subscription rights, were sold pursuant to the basic subscription privilege and the oversubscription privilege described in the prospectus.
The value of shares offered for subscription to the capital increase was QR 5,866,665,920 indicating an oversubscription exceeding the targeted amount by QR 6,867,857,920.