Offer for subscription
A type of corporate action. Like a rights issue or open offer, an offer for subscription lets shareholders buy additional shares, usually at a fixed price.
What makes an offer for subscription different is that you aren’t offered shares in proportion to the number you already own. Instead, you can subscribe for as many as you’d like, subject to the terms of the offer.
With an offer for subscription, there’s usually a minimum level of total subscriptions for the shares. If this level isn’t met by shareholders collectively, the offer can be withdrawn. Similarly, if the company receives more applications for shares than are on offer, it can reduce the number of shares it allocates to each applicant, accordingly.
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