Retail vs NII vs QIB

Three categories, different applicants

Retail refers to eligible individual applicants within the retail application limit. NII means non-institutional investors: this can include individuals applying above the retail limit and other eligible non-institutional applicants. QIB means qualified institutional buyers, such as eligible mutual funds, insurers and banks.

The offer document sets out the categories, reservation, eligibility and application conditions for that issue. A small company is not automatically a retail-friendly application: SME issues can have materially larger minimum applications and different rules.

Compare demand within the same bucket

If 100 shares are available in a category and bids seek 1,000 shares in that category, subscription is 10x. Retail 10x and QIB 10x describe demand relative to different pools of shares. They do not mean equal numbers of investors or equal amounts of money.

A total subscription figure combines demand across categories. It cannot tell you your personal allotment chances. Bid validity, category allocation, application sizes and the final basis of allotment matter.

Why institutional demand is not a recommendation

Large investors may have different mandates, holding periods, access to research and risk limits. Their bids are not a promise of a listing gain. Demand can change near the deadline, and an early reading is not the final outcome.

Before choosing a category

• Read eligibility and application limits in the current offer document.
• Confirm the number of lots and the amount your bank will block.
• Check the correct category with your broker; do not assume a higher application buys a higher chance of profit.
• Keep enough funds available and complete the payment mandate before the applicable cut-off.

Next: what 1x, 10x and 100x subscription mean, or compare two IPOs.