A company was formed on 1 March 2018 with an authorized capital of OMR 10 million divided into common stock of OMR 0

Initial Public Offering is the process by which a private company can go public by sale of its stocks to general public. It could be a newly formed company, young company or an old company which decides to be listed on a Registered Stock Exchange and hence goes public.

Companies can raise equity capital with the help of an IPO by issuing new shares to the public or the existing shareholders can sell their shares to the public (this helps to avoid raising capital via debt).

A company offering its shares to the public is not obliged to repay the capital to public investors.The company which offers its shares, known as an 'issuer', does so with the help of investment banks. After IPO, the company's shares are traded in an open market. Those shares can be further sold by investors through secondary market trading.

As per the question,the applications subscribed by the public is equal to the number of shares the public is willing to buy. Hence, if the IPO is fully subscribed, then the number of applications received by the Company is 5,000,000 (option b).

The amount received by the company against the applications would be OMR 2,500,000 (5,00,000*0.500).