What are 'inflated subscriptions' by institutional investors, and how are they prevented?

Inflated subscriptions means bidding for more shares than one's actual demand or ability to pay in order to be allocated the desired number of shares.

To prevent this, the managing underwriter checks institutional investors' ability to pay for the shares (equity capital for proprietary assets, total assets for entrusted assets, etc.) and does not allocate IPO shares to bids whose amount exceeds that ability to pay. Institutional investors must submit to the managing underwriter a written undertaking stating their ability to pay for shares.