Which underwriting type withdraws the issue if the entire amount is not sold?

In the context of underwriting types, an all-or-none offering is characterized by the condition that if the entire issue is not sold to investors, the offering is withdrawn. This means that the issuer will not proceed with the deal unless the entire amount is successfully placed in the market. This type of underwriting is particularly advantageous for issuers who want to ensure that they raise the total amount of capital they originally aimed for, rather than accepting a partial amount that may not meet their funding objectives.

In contrast, other underwriting types do allow for the possibility of incomplete sales under certain conditions. For instance, a firm commitment underwriting involves the underwriter purchasing the entire offering and assuming the risk of selling it to the public, regardless of whether the entire issue is sold. Standby underwriting is typically used in conjunction with rights offerings where the underwriter agrees to purchase any shares that remain unsubscribed after existing shareholders have had a chance to buy. An agency deal entails the underwriter acting as an agent to sell the securities for the issuer without taking on the risk of selling the entire issue.

In summary, the all-or-none offering is defined by its strict requirement that the full amount must be sold for the transaction to proceed, which ensures that the issuer achieves its funding goals.