Module III· ECM — IPO ProcessIntermediate
Question

What do order book coverage and oversubscription mean?

Answer

Order book coverage compares investor demand to shares offered. If demand equals offer size, the book is 1.0x covered. Oversubscription means demand exceeds supply, for example 3x covered. Quality matters more than headline coverage: price limits, investor type, order stickiness, and concentration determine real pricing power.