Is IPO allocation based on demand and application size?

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1 Answer 5
John milleer

Answered 6 hours ago

Yes, IPO allocation is often influenced by both investor demand and the size of individual applications. When an IPO is oversubscribed, companies and underwriters typically prioritize allocations based on factors like the number of shares requested, investor category, and overall demand. Larger applications may receive a higher allotment, but fair distribution is also maintained to ensure broad participation. 

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