Definition
When applications for shares are received for an IPO, the listing company and their advisers work out how many shares applicants may receive and at what price - called an allocation. An IPO might be ‘oversubscribed’, meaning there are more applications than there are shares available to be allocated. If so, people hoping to invest in an IPO may receive less than, or none, of the shares they applied for.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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