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Explaination of HK IPO |
Q. |
What is HK IPO? |
A. |
HK IPO means Initial Public Offering in Hong Kong. It refers to the first public distribution of stocks from a company that has not been publicly traded before. At the completion of the process, its shares will be listed on the Hong Kong Stock Exchange.
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Q. |
What is the Prospectus for? |
A. |
In order to make an informed decision about whether to invest in a HK IPO, you should assess the basic fundamentals of the company by reading the information in the prospectus.
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Q. |
How many days is the application period of a HK IPO? |
A. |
In general, the application period of a HK IPO is only 3.5 business days.
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Q. |
How do I know when a HK IPO is available for subscription? |
A. |
If you are interested in applying HK IPOs, you are advised to check the new announcements, or register to BOOM's INFOExpress service.
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Q. |
Can I apply for any number of shares I want to? |
A. |
No. You can only apply for the number of shares as specified by the issuer. You may refer to the "Table of Multiples & Payments" of respective HK IPO in the "HK IPO Center". It specifies the correct subscription amount for different number of shares based on the offer price.
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Q. |
Why the payment amount is more than the value of shares I apply? |
A. |
The payment amount as stated in the "Table of Multiples & Payment" is the value of shares you subscribe plus the transaction costs, such as SFC transaction levy, SEHK trading fee, etc.
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Q. |
When do I pay for the subscription? |
A. |
The total subscription payment must be paid to the issuer on or before the closing date. If you apply the HK IPO through BOOM, BOOM will deduct the subscription monies from your BOOM trading account and pay to the issuer.
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Q. |
Will I get all the shares I apply for? |
A. |
This depends on the popularity of the offer and the status of the market. If the IPO is oversubscribed, the allotment is generally made by way of balloting based on the basis determined by the listed company.
This means that you may receive only a fraction of the shares you applied for. You may also be allotted with more or fewer shares than others who have applied for the same number of shares. It is also possible that you are not allotted any shares at all.
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Q. |
What is the allotment basis? |
A. |
The allotment basis depends on the number of valid applications for subscription for the IPO shares. Normally, the share registrar appointed by the issuing company first screens out multiple, incomplete or wrongly filled applications, e.g. the number of shares applied for is in an amount other than those specified in the application form. Then, shares are allotted according to the basis of allocation as determined by the sponsor and the listed company.
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Q. |
Why reject my application? |
A. |
Inaccurate payment amounts, and multiple applications, meaning submitting more than one application form with the same name (or even joint name applications), will be rejected.
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HK IPO Information and Alerts |
Q. |
Where can I obtain HK IPO information and application forms? |
A. |
Whenever there is any new HK IPOs open for subscription, you can find its offering information under the "HK IPO Center". If you wish to apply for the HK IPO through BOOM, you can download the application form or simply apply online in the "HK IPO Center".
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Q. |
Where can I obtain the Prospectus of the HK IPO? |
A. |
An electronic copy of the HK IPO Prospectus can be accessed through BOOM website.
If you wish to obtain hard copies of the Prospectus, you can go to BOOM's office.
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Q. |
Would BOOM send me alert on new HK IPOs? |
A. |
Simply register to the INFOExpress service, BOOM will send notification to your registered email when there is any new HK IPOs open for subscription. This email alert service is free of charge!
To register, simply go to "INFOExpress" under the "Market Info" menu, tick the "HK IPOs" box and press "Update".
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Subscribing for HK IPO Shares |
Q. |
Who is eligible to apply HK IPO through BOOM? |
A. |
All BOOM account holder can apply for HK IPO through BOOM.
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Q. |
I am an US citizen, can I apply for HK IPO? |
A. |
No. In general, the conditions of application for most Hong Kong Public Offer indicate that any application for the benefit of a person within the United States or a US person (as defined in Regulation S under the United States Securities Act of 1933, as amended) is not acceptable.
As such, if you are an US citizen, BOOM cannot apply for any Hong Kong Offer Shares on your behalf.
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Q. |
How can I subscribe for HK IPO? |
A. |
You can apply for HK IPO through BOOM or by yourself, see the table below.
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Apply through BOOM |
Apply by Yourself |
| Application Methods |
- Apply online through BOOM website, or
- Fill out BOOM's HK IPO subscription form, sign and fax back to BOOM.
Advantage:
Can apply even outside Hong Kong
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Come to BOOM's office to obtain white form. Our customer service representatives can assist you in filling it out
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| Payment for Subscription |
Charge to your BOOM trading account (there will be a handling charge of HK$100 for every application)
Advantage:
No need to prepare personal cheque or apply for bank draft
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Personal Cheque / bank draft
Notes:
- Exact payment cheque / bank draft should be prepared in advance
- Handling fee will be charged by banks for bank draft application
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| Refund of Monies |
Credit to your BOOM trading account. Date of refund will be specified on our website.
Advantages:
- No need to take mailing risks
- Monies immediately available for other investment purposes
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Receive physical shares under your name by post from the Listed Company.
Notes:
- Mailing risks / delay may occur
- Monies will be available only after the cheque is cleared
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| Allotment of Shares |
Shares deposited to your BOOM trading account on or before the 1st trading day.
Advantages:
Able to sell allotted shares on the 1st trading day
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Receive physical shares under your name by post from the Listed Company.
Notes:
- Mailing risks / delay may occur
- Processing time is needed to deposit physical shares to BOOM account before selling
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| Allotment results |
BOOM will notify you via E-mail in the afternoon of the allotment date. |
Check designated newspapers or SEHK / GEM website by yourself. |
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Q. |
How to apply HK IPOs online? |
A. |
- Click the banner "HK IPO Center" on the left-hand side of BOOM's homepage;
- View its offering information under the "Current HK IPOs" section;
- Click the [Apply Online] button;
- Enter your Login ID and Password;
- Read and agree all terms and conditions;
- Select the "Number of Shares Applied For";
- Enter your Keycode and press [Confirm];
- Make sure you see the application confirmation page that states "Your IPO Subscription Instruction has been received by BOOM".
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Q. |
How do I know if BOOM has received my online IPO application? |
A. |
BOOM will acknowledge receipt of your online IPO application by displaying on screen an application confirmation page.
You can always retrieve the conformation page by clicking the [View] button on the "Pending IPO Instructions" section or the "IPO Order History" section.
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Q. |
When the IPO is open for subscription, can I submit my application anytime? |
A. |
Yes. Once the IPO is open for subscription, you can submit an online IPO application any time before its application deadline.
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Q. |
Can I apply for the same IPO by completing more than one application? |
A. |
No. You can only submit one application for the same HK IPO.
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Q. |
Can I apply for the same IPO through BOOM and another broker at the same time? |
A. |
No. You can only make one application for the same HK IPO in your own name. Multiple applications will be rejected.
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Q. |
Can I cancel my IPO application? |
A. |
Yes. You can go to the "Pending IPO Instructions" section to cancel your IPO application instruction before the application deadline specified on the web.
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Q. |
Can I change my IPO application? |
A. |
No. You cannot change any entered application. Before the application deadline, you can cancel your existing instruction and re-input a new IPO application instruction.
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Q. |
When will BOOM deduct application money from my account? |
A. |
Once you submit an IPO application, BOOM will withhold the subscription amount from your BOOM account.
The amount required will only be deducted from your account on the Application Deadline as stated on web.
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Q. |
How do I know the status of my IPO application? |
A. |
You can simply go to the "IPO Order History" section, and check the status of your IPO application instruction. If the status is "Executed", it means BOOM has submitted the IPO application on your behalf.
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HK IPO Shares Allottment and Refund |
Q. |
How do I know whether I have allotted any shares? |
A. |
Once the issuer has announced the results, BOOM will notify you the results of your allotments by sending an email to your registered email address.
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Q. |
Will I receive physical share certificates for my allotted shares? |
A. |
No. If you apply the IPO through BOOM, the issuer will deposit the allotted shares into BOOM's CCASS account. And BOOM will then credit the allotted shares into your BOOM account.
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Q. |
When will I receive the allotted shares? |
A. |
Allotted Shares will be credited to your BOOM account on the Allotment Date as specified on our web, and reflected in your portfolio.
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Q. |
When will I receive the refund of my unsuccessful application money? |
A. |
Upon receipt of the refunded money from the Issuer, BOOM will credit the refunded application money to your BOOM account on the Refund Date as specified on our web.
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HK IPO Financing |
Q. |
What is the HK IPO Loan for? |
A. |
With HK IPO loan, you are able to subscribe more shares and increase the chance of receiving higher number of allocated shares. However, you should bear in mind that you have to pay interest for your loan regardless of the results of allottment.
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Q. |
Who is eligible to apply for IPO Loan? |
A. |
All BOOM account holder, either cash account holder or margin account holder, can apply for IPO Loan.
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Q. |
How to apply IPO Loan online? |
A. |
- Click the banner "HK IPO Center" on the left-hand side of BOOM's homepage;
- View its offering information under the "Current HK IPOs" section;
- Click the [Apply Online] button;
- Enter your Login ID and Password;
- Read and agree all terms and conditions;
- Select the "Number of Shares Applied For";
- Click the checkbox "I would like to apply for IPO Loan" and enter the "Request Loan Amount",
- Enter your Keycode and press [Confirm];
- Make sure you see the application confirmation page that states "Your IPO Subscription Instruction has been received by BOOM".
Please note that the approval of your loan application and the loan amount granted shall be at the sole discretion of BOOM.
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