Undersubscribed

Securities - sale - issue - primary market - subscription.

Undersubscribed describes a situation in a new securities issue subscription process.

When the issue is "undersubscribed", fewer commitments to buy are received from the market than the number of available securities.

Sub-underwriter's commitment

"A sub-underwriter is a member of a new issue syndicate who agrees to buy a certain proportion of the issue from the managers should the issue be undersubscribed.

They receive an underwriting fee and a selling concession on the principal amount of the securities for which they may subscribe."

Sub-underwriter - the Treasurer's Wiki.

See also

• Book build
• Concession
• Issue
• Offer for sale
• Order book
• Oversubscribed
• Primary market
• Sale
• Security
• Subscription
• Sub-underwriter
• Syndicate
• Underwriter