Oversubscribed share offer

Oversubscribed refers to when investors collectively bid for more shares in a share offer than the company making the offer has for sale.

Usually if an offer is oversubscribed the applications or bids for the shares are scaled back to enable all or most shareholders to receive some shares. This means that most investors will get a proportion of the shares they bid for but not all of them.

Most of the big privatisation issues were substantially oversubscribed - taken by some as a measure of their success by others as proof assets were being sold too cheaply.

See Also Online share dealing service Stockmarket Centre

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2009-02-17 00:00:00 © Moneyextra.com