BJIt does not usually occur, but they could as I understand it....

BJ

It does not usually occur, but they could as I understand it. This is from the ASIC website:

http://www.fido.gov.au/fido/fido.nsf/byheadline/Guide+to+reading+a+prospectus?opendocument

There is often confusion over what happens when a float is oversubscribed. The benefit of the company accepting oversubscriptions is that that you may still be issued shares in the float even if people subscribe for more shares than anticipated. But if the company accepts too many oversubscriptions, it may mean that demand for the shares will be reduced once the company is listed and its shares may then be worth less. At the very least, it may reduce the earnings per share.

You should never assume that:

* when a float is oversubscribed, each investor will receive a proportion of the shares they applied for. Under the Corporations Act, the directors of a company do not have to do this. Provided the company issues shares according to the way it says it will in the prospectus, then you may have no recourse if you don't receive all or any of the shares you applied for. Some prospectuses, for example, even state that in the case of an oversubscription, the board of directors will allocate shares to subscribers at the board's discretion. In this case, you may miss out on getting shares altogether.

While it refers to floats, the same principles apply to SPPs