A measure of demand in the public offering, equal to the valid shares applied for in the public offering divided by its initial number of shares. For example, 100 times oversubscribed means applications are 100 times the initial public offer shares. The higher the multiple, the lower the allotment rate for a given application, and the more likely clawback is triggered and more shares are allocated to the public offering. The allotment results announcement of each IPO prevails on the exact basis.
The links above lead to official sources such as HKEX and the SFC. The explanation on this site summarises them and may differ from the official definition; the official documents prevail.
This page explains the HK IPO term "Oversubscription Ratio" and links to related terms. Definitions are compiled from HKEX Practice Note 18 and the Listing Rules, for understanding subscription rules only — not investment advice.
