Legal Definitions - undigested offering

An undigested offering is a public offering of securities that remain unsold because there is insufficient demand at the offered price. This means that the company offering the securities was not able to sell all of them to investors.

For example, if a company decides to issue 1,000 shares of stock at $10 per share, but only 500 shares are sold, the remaining 500 shares are considered undigested. This can happen if investors are not interested in buying the stock at the offered price or if there is too much competition from other companies offering similar securities.

Undigested offerings can be a problem for companies because they may not be able to raise the amount of capital they were hoping for. It can also be a sign that the market is not interested in the company's securities, which can hurt the company's reputation and future prospects.