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Initial Public Offering (IPO)
What is Initial Public Offering (IPO)?
Initial Public Offering (IPO) refers to shares issued by companies that plan to raise funds in the capital market. Financial institutions usually handle the listing affairs including printing IPO prospectus, pricing and underwriting etc, on behalf of the listing companies. The market offering IPO shares are usually called "Primary Market". Through this market, companies can raise funds for the use of future business development. After IPO shares are successfully allotted to subscribers, subscribers automatically become one of the shareholders of the company. Shareholders can trade the IPO shares via the secondary market, which is an actually Hong Kong stock Market with other investors.
How can I apply for IPO Subscription?
Our company can subscribe for IPOs on behalf of the clients who have opened a securities trading account with us. Please contact us to open an account.
1. Log in to App (POEMS HK), choose “IPO” and select “Apply IPO”. Then, choose the IPO Code, and enter the number of subscribed shares and other necessary information as required by the App; or
2. Log in to POEMS, choose “HK Stocks” and then select “IPO Subscription”. Then, choose the IPO Code, and enter the number of subscribed shares and other necessary information as required on the POEMS' page; or
3. Contact your account executive directly by phone to place an order by phone call.
1. Log in to App (POEMS HK), choose “IPO” and select “Apply IPO”. Then, choose the IPO Code, and enter the number of subscribed shares and other necessary information as required by the App; or
2. Log in to POEMS, choose “HK Stocks” and then select “IPO Subscription”. Then, choose the IPO Code, and enter the number of subscribed shares and other necessary information as required on the POEMS' page; or
3. Contact your account executive directly by phone to place an order by phone call.
Note: The same identification number cannot be used to make duplicate IPO applications. Any duplicate IPO applications will be considered invalid.
Where can I find information about the IPO application timetable, i.e. the IPO application deadline, the deduction date, and the Phillipmart date?
Regarding the IPO schedule, please go to the following link.
After applying for an IPO Subscription as above, can I change or cancel the IPO order?
Yes, changes or cancellations to an IPO order must be made before 3.00 pm of the day before latest date for the IPO application as it is listed on the fact sheet.
2.Log in to POEMS, choose “HK Stocks” and then select “IPO Subscription”. Then, choose the IPO Code to change or cancel your order on the POEMS’ page; or
3.Contact your account executive directly by phone to change or cancel your IPO order.
Note: Once IPO Subscription application is submitted, the company will deduct related interest and handling fees from your trading account and reserves the right of final decision over all changes.
1.Log in to App (POEMS HK), choose “IPO” and then select “Apply IPO”. Then, choose the IPO Code to cancel your order in the page. If you would like to change your order, you need to cancel the original order and place a new order; or2.Log in to POEMS, choose “HK Stocks” and then select “IPO Subscription”. Then, choose the IPO Code to change or cancel your order on the POEMS’ page; or
3.Contact your account executive directly by phone to change or cancel your IPO order.
How can I determine the IPO Allotment Result of my application?
1. Log in to POEMS online trading platform>HK Stock>IPO Allotment one trading day before listing; or
2. If you bind your account to your App (POEMS HK), you will receive notifications regarding the allotment; or
3.You may call your account executive for the allotment result; or
4. Log in to "Phillipmart trading platform" (available from 4:15 p.m.-6:30 p.m. on the trading day before the listing) on the allotment day for the result; or
5. Check your daily statement on the allotment day.
2. If you bind your account to your App (POEMS HK), you will receive notifications regarding the allotment; or
3.You may call your account executive for the allotment result; or
4. Log in to "Phillipmart trading platform" (available from 4:15 p.m.-6:30 p.m. on the trading day before the listing) on the allotment day for the result; or
5. Check your daily statement on the allotment day.
Note: Once IPO Subscription application is submitted, the company will deduct related interest and handling fees from your trading account and reserves the right of final decision over all changes.
What is the advantage of using online subscription?
In the past, investors could only subscribe IPO shares by filling in a hand-written application themselves or informing account executives directly to subscribe IPO on their behalf. But now clients can subscribe for IPO online! This subscription is exclusively for our clients. Clients are required to complete the online application and submit it to our company. We will then arrange the subscription on the behalf of you. Investors may easily make careless mistakes during the application process (such as filling in incorrect or missing information) themselves, this may result in the termination of subscription altogether. But now by entering some simple information on the web, our company will work for you and thus avoiding the situation described above. How convenient and reliable!
In addition, on IPO stocks will be written by our research department, so that our clients can have better knowledge about the business and outlook of the companies before subscribing the IPO shares.
In addition, on IPO stocks will be written by our research department, so that our clients can have better knowledge about the business and outlook of the companies before subscribing the IPO shares.
How much is the fee for IPO subscription and margin financing?
- Handling fee ：$100
- Transaction levy ：0.0027%
- Trading fee ：0.005%
- Commission rate：1%
- Interest : Please refer to our notice
Note: Upon receipt of an IPO application, the company will charge the applicant relevant interests and handling fees, and has absolute discretion to accept any amendment or withdrawal of the IPO application.
What is margin financing?
Market feedback on IPO subscription is always the main reason affecting the chance of shares allotment. Therefore large shares subscription volume can boost the chance of successful allotment. From now, with margin financing service, you can use the capital in hand to subscribe more IPO shares. If there is over-subscription, you only need to pay for the balanced amount of the borrowing.
All company clients can enjoy our IPO financing service. For subscribing IPO listed on the main board, margin ratio reaches maximum of 90%, meaning that clients are only required to pay 10% of the subscription fee in cash. The maximum margin ratio for gem board stocks reaches 50%.
N.B. Debt financing of the margin accounts in our company does not involve credit service companies; also the interest rate will not be affected by inter-bank lending rate. Want to join us? Please click here to apply.
If a subscription application for IPO is submitted through the FINI system, the margin interest charged by the Company to you will be calculated based on the amount you committed to borrow from the Company when you submitted your IPO application via telephone or online.
All company clients can enjoy our IPO financing service. For subscribing IPO listed on the main board, margin ratio reaches maximum of 90%, meaning that clients are only required to pay 10% of the subscription fee in cash. The maximum margin ratio for gem board stocks reaches 50%.
N.B. Debt financing of the margin accounts in our company does not involve credit service companies; also the interest rate will not be affected by inter-bank lending rate. Want to join us? Please click here to apply.
If a subscription application for IPO is submitted through the FINI system, the margin interest charged by the Company to you will be calculated based on the amount you committed to borrow from the Company when you submitted your IPO application via telephone or online.
What is the quantum of financing allowed?
Margin financing service is limited to stocks listed on the main board or gem board of SEHK. Our company also provides margin financing service of stock placement for your clients*.
What is the arrangement when there is suspension, breakdown, or disruption of PhillipMart?
Announcements will be shown on our company website in the case of suspensions, breakdown, or disruption of the system. Our company has full discretion to cancel all placed or executed orders.
If client wants to clarify their order’s status or is experiencing difficulties with PhillipMart, they should immediately contact their account executive or our customer services at (852) 2277 6555.
If client wants to clarify their order’s status or is experiencing difficulties with PhillipMart, they should immediately contact their account executive or our customer services at (852) 2277 6555.
What is the arrangement of PhillipMart when new listings of securities postpone, cancel or alter their terms and conditions?
Cancellation: All orders placed by clients will only be cancelled and void if a particular security fails to list on the HKEX.
Postponement: Executed orders will remain valid. Outstanding orders will be cancelled.
Alteration: Alteration to terms and conditions of IPO will not affect PhillipMart unless it leads to postponement or cancellation of listing, in which case, please refer to the above.
In the case of any cancellation, postponement or alteration, an announcement will be published on our company website.
Postponement: Executed orders will remain valid. Outstanding orders will be cancelled.
Alteration: Alteration to terms and conditions of IPO will not affect PhillipMart unless it leads to postponement or cancellation of listing, in which case, please refer to the above.
In the case of any cancellation, postponement or alteration, an announcement will be published on our company website.
What is the adverse weather arrangement for PhillipMart?
In the case of tropical cyclone warning signal number 8 or above or black rainstorm signal:
- Signal lowered after 12:00 noon, no trading for the day.
- Signal discontinued before 12:00 noon, PhillipMart trading sessions will begin as normal at 4:15p.m.
- If the Signal is issued during PhillipMart trading session, it will trade as normal until 6:30p.m.
What is the trading methodology of PhillipMart?
In order to ensure trading occurs in a fair and orderly basis, we have adopted the following trading methodology:
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Price and Time Priority
If an order to buy and sell are of same price and quantity, the trade orders are matched and executed;
If two orders on the same side are of same price but different entry time, the earlier one is prioritized. The queuing order cannot be changed. If a client amends an order, it will lose its priority. -
Central Order Book
The ATS has a central order book that retains all bids and offers and its quantities. These bids and offers are aggregated by price and placed accordingly. -
Order Price Limit
The first input order price is restricted between 50% and 200% of the issue price. Subsequent orders cannot be more than 50 ticks from the last executed price. Any deviation would be rejected automatically. An limit order will allow matching of up to 10 price queues (i.e. the best price queue and up to the 10th queue at 9 spreads away) at a time provided that the traded price is not worse than the input price. The sell order input price cannot be made at a price of 10 spreads (or more) below the current bid price whereas the buy order input price cannot be made at a price of 10 spreads (or more) above the current ask price. Any outstanding limit order will be put in the price queue of the input price. -
Quantity Limit
Quantity restriction 3000 lots per order.
PhillipMart：
We are the first financial institution granted license from SFC to carry out the IPO "Over the-Counter (OTC)" in Hong Kong. IPO "OTC" is applicable to those people who have already successfully allotted shares or expected to be allotted of shares who trade with other investors, before the IPO is listed on the SEHK and ready for the AMS. For a majority of IPOs, we offer PhillipMart trading one day prior to the listing date. Only clients, licensed holders, corporate clients and account executives of our company are allowed to trade via the PhillipMart platform.
We will announce whether a particular IPO will have "OTC" on the announcement date of the allotment result. The trading hours is between 4:15 p.m. – 6:30 p.m., and the settlement date will be 2 trading days counting from the listing date and all incompleted order during trading hour will be cancelled.
Clients who trade through PhillipMart should take note that our contingency arrangement may be revised from time to time without prior notice. Please visit our company website for any revisions made.
We are the first financial institution granted license from SFC to carry out the IPO "Over the-Counter (OTC)" in Hong Kong. IPO "OTC" is applicable to those people who have already successfully allotted shares or expected to be allotted of shares who trade with other investors, before the IPO is listed on the SEHK and ready for the AMS. For a majority of IPOs, we offer PhillipMart trading one day prior to the listing date. Only clients, licensed holders, corporate clients and account executives of our company are allowed to trade via the PhillipMart platform.
We will announce whether a particular IPO will have "OTC" on the announcement date of the allotment result. The trading hours is between 4:15 p.m. – 6:30 p.m., and the settlement date will be 2 trading days counting from the listing date and all incompleted order during trading hour will be cancelled.
Clients who trade through PhillipMart should take note that our contingency arrangement may be revised from time to time without prior notice. Please visit our company website for any revisions made.
