What does ‘allocation’ mean?

During the offer period, institutional investors and retail investors may apply for shares. Once the offer period closes, the company and the banks advising the company will be able to see the total number of orders that have been submitted.

The company and its advisors will then make a decision as to how to distribute the shares. The final decision is called ‘allocation’. Allocation is done in accordance with the allocation policy that will have been defined by the company issuing the shares.


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