IPO Basics3 min read
What does 'IPO subscribed 40 times' mean?
Subscription measures demand. When an IPO is subscribed many times over, far more people applied than there are shares.
When you read that an IPO was 'subscribed 40 times', it means investors applied for 40 times the number of shares on offer. It is a measure of demand.
Why it matters, and why it does not
High subscription often means strong interest and a better chance of a listing pop, but it also means allotment is scarce, so most retail applicants get few or no shares. Heavy subscription is about demand, not a guarantee of quality.