FAQs
FAQs

FAQs

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Hong Kong Initial Public Offer

    Explanation of HK IPO
  1. 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.
  2. 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.
  3. In general, the application period of a HK IPO is only 3.5 business days.
  4. If you are interested in applying HK IPOs, you are advised to check the new announcements, or register to MONEX BOOM's INFOExpress service.
  5. 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.
  6. 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.
  7. The total subscription payment must be paid to the issuer on or before the closing date. If you apply the HK IPO through MONEX BOOM, MONEX BOOM will deduct the subscription monies from your MONEX BOOM trading account and pay to the issuer.
  8. 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.
  9. 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.
  10. 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.
    HK IPO Information and Alerts
  1. 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 MONEX BOOM, you can download the application form or simply apply online in the "HK IPO Center".
  2. An electronic copy of the HK IPO Prospectus can be accessed through MONEX BOOM website.

    If you wish to obtain hard copies of the Prospectus, you can go to MONEX BOOM's office.
  3. Simply register to the INFOExpress service, MONEX 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!
    Subscribing for HK IPO Shares
  1. All MONEX BOOM account holder can apply for HK IPO through MONEX BOOM.
  2. 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, MONEX BOOM cannot apply for any Hong Kong Offer Shares on your behalf.
  3. You can apply for HK IPO through MONEX BOOM or by yourself, see the table below.

    Apply through MONEX BOOM Apply by Yourself
    Application Methods
    Apply through MONEX BOOM
    1. Apply online through MONEX BOOM website, or
    2. Fill out MONEX BOOM's HK IPO subscription form, sign and fax back to MONEX BOOM.

    Advantage:

    Can apply even outside Hong Kong

    Apply by Yourself
    Come to MONEX BOOM's office to obtain white form. Our customer service representatives can assist you in filling it out
    Payment for Subscription
    Apply through MONEX BOOM
    Charge to your MONEX 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

    Apply by Yourself
    Personal Cheque / bank draft

    Notes:
    1. Exact payment cheque / bank draft should be prepared in advance
    2. Handling fee will be charged by banks for bank draft application
    Refund of Monies
    Apply through MONEX BOOM
    Credit to your MONEX BOOM trading account. Date of refund will be specified on our website.

    Advantages:
    1. No need to take mailing risks
    2. Monies immediately available for other investment purposes
    Apply by Yourself
    Receive physical shares under your name by post from the Listed Company.

    Notes:
    1. Mailing risks / delay may occur
    2. Monies will be available only after the cheque is cleared
    Allotment of Shares
    Apply through MONEX BOOM
    Shares deposited to your MONEX BOOM trading account on or before the 1st trading day.

    Advantages:
    Able to sell allotted shares on the 1st trading day
    Apply by Yourself
    Receive physical shares under your name by post from the Listed Company.

    Notes:
    1. Mailing risks / delay may occur
    2. Processing time is needed to deposit physical shares to MONEX BOOM account before selling
    Allotment results
    Apply through MONEX BOOM
    MONEX BOOM will notify you via E-mail in the afternoon of the allotment date.
    Apply by Yourself
    Check designated newspapers or SEHK / GEM website by yourself.
    1. Login MONEX BOOM account
    2. "Subscribe" > "Apply HKIPO" > "HK IPOs Subscriptoin" > "Current IPO Offerings",View its offering information;
    3. Click the [Apply Online] button;
    4. Read and agree all terms and conditions;
    5. Select the "Number of Shares Applied For";
    6. Enter your Keycode and press [Confirm];
    7. Make sure you see the application confirmation page that states "Your IPO Subscription Instruction has been received by MONEX BOOM".
  4. MONEX BOOM will acknowledge receipt of your online IPO application by displaying on screen an application confirmation page.

    To retrieve the conformation page, you can simply login to your MONEX BOOM account, and then go to Trading & Portfolio > Pending IPO Instructions section or the IPO Order History section.
  5. Yes. Once the IPO is open for subscription, you can submit an online IPO application any time before its application deadline.
  6. No. You can only submit one application for the same HK IPO.
  7. No. You can only make one application for the same HK IPO in your own name. Multiple applications will be rejected.
  8. Yes. You can go to the Pending IPO Instructions section to cancel your IPO application instruction before the application deadline specified on the web.
  9. 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.
  10. Once you submit an IPO application, MONEX BOOM will withhold the subscription amount from your MONEX BOOM account.

    The amount required will only be deducted from your account on the Application Deadline as stated on web.
  11. 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 MONEX BOOM has submitted the IPO application on your behalf.
    HK IPO Shares Allottment and Refund
  1. Once the issuer has announced the results, MONEX BOOM will notify you the results of your allotments by sending an email to your registered email address.
  2. No. If you apply the IPO through MONEX BOOM, the issuer will deposit the allotted shares into MONEX BOOM's CCASS account. And MONEX BOOM will then credit the allotted shares into your MONEX BOOM account.
  3. Allotted Shares will be credited to your MONEX BOOM account on the Allotment Date as specified on our web, and reflected in your portfolio.
  4. Upon receipt of the refunded money from the Issuer, MONEX BOOM will credit the refunded application money to your MONEX BOOM account on the Refund Date as specified on our web.
    HK IPO Financing
  1. 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.
  2. All MONEX BOOM account holder, either cash account holder or margin account holder, can apply for IPO Loan.
    1. Login MONEX BOOM account;
    2. "Subscribe" > "Apply HKIPO" > "HK IPOs Subscriptoin" > "Current IPO Offerings" section;
    3. Click the [Apply Online] button;
    4. Read and agree all terms and conditions;
    5. Select the "Number of Shares Applied For";
    6. Click the checkbox "I would like to apply for IPO Loan" and enter the "Request Loan Amount",
    7. Enter your Keycode and press [Confirm];
    8. Make sure you see the application confirmation page that states "Your IPO Subscription Instruction has been received by MONEX BOOM".
    Please note that the approval of your loan application and the loan amount granted shall be at the sole discretion of MONEX BOOM.

Last Update: July 2017.