Hong Kong IPO

An IPO is an initial offering, made to the public, to purchase shares in what has historically been a privately owned company. If an Initial Public Offering (IPO) is successfully completed, the shares that have been issued by the company will become publicly tradable on the listing exchange. The stock issued by the company give the bearer partial ownership in the company. An IPO is one of numerous mechanisms available to private companies to raise capital.

There are numerous risks of applying for securities in an Initial Public Offering. If the IPO is over-subscribed, you may not be allotted the quantity of shares you applied for or may not receive any shares. Whether your application is fully allotted or not, you will have the Application Monies locked up during the subscription period. You will also need to pay the interest charges on any IBHK Subscription Financing regardless of whether you are allotted any shares. If the IPO is not over-subscribed you should expect to be allotted all the shares you applied for, barring unforeseen circumstances, and to incur the full cost of such allocation.

Once the IPO Securities are listed for trading, the price will fluctuate and the value of the IPO securities you are allotted may fall rather than rise and may even become worthless.

You should read the Offering Documents, including the Risk Disclosure, prior to making an investment decision and should make sure that the investment decision is based on the public Offering Documents. You should carefully consider if investment in the Public Offer is suitable for your investment goals by reference to your financial position and other conditions before deciding whether make an application.

To see a list of all active IPOs that IBHK is supporting the participation in for its clients, please log in to your IBHK Account via Client Portal and select "IPO Subscription" from under the "Trade" heading on the menu. If you do not have an existing IBHK account, please click "Open Account" from on the menu above to start your application process. Please be sure to start your application well in advance of any IPO you wish to participate in so that you have sufficient time to complete the account opening process and fund your account.

If there is a particular IPO that you would like to participate in that is not visible to you in the "IPO Subscription" section of Client Portal, its listing details may not be publicly available yet. If the IPO details are publicly available but you cannot see the IPO in Client Portal, IBHK may not be supporting applications for the IPO, or you may not be eligible to participate. Please contact the Customers Service Hotline to assist you if you cannot find an IPO you would like to participate in.

HK IPO subscription applications can be made by Interactive Broker Hong Kong account holders from the IPOs Application Start Date through to the IBHK Application Cut Off Time. To see the application period for any active IPOs, please log into your IBHK Account via Client Portal and select "IPO Subscription" from under the heading "Trade" on the menu.

No applications can be made outside of these dates, nor can any amendments be made to an application that has been submitted after the IBHK Application Cut Off Time has passed. Application dates for an upcoming listing will be published in Client Portal once the dates have been made publicly available.

Interactive Brokers Hong Kong does not support paper based or electronic white forms subscription applications to Hong Kong IPOs. Applications can only be made by giving IBHK electronic instructions via Client Portal, to act as your agent and cause HKSCC Nominees, or any other Nominee Companies instructed by Interactive Brokers Hong Kong, to make an application on your behalf. Any successfully allocated shares will be allocated in the name of the common nominee and deposited in IBHK's HKSCC account making them available to you in your IBHK account on the listing date.

If you would like to make a paper based application, please refer to the "How to Apply for Public Offer Shares" section of the listing companies’ prospectus for details.

Yes, IBHK does offer HK IPO share financing to its margin account clients for selected HK IPOs. If you currently have a cash account and would like to use financing to support your HK IPO subscription application, you will first need to upgrade your account to a margin account. You can do so by logging in to Client Portal and selecting Settings > Account Settings > Account Type > Configure Account Type and then selecting "Margin" from the drop-down list. Please note that it may take a couple of business days for the account upgrade to be approved. As such we strongly encourage you to make any request to change your account type well in advance of an HK IPO you would like to make an application for.

For further details on the IPO financing, please see the IPO Financing section above.

Please see the "Fees & Service Charges" & "IPO Calculator" sections below for details.

You may amend or cancel your HK IPO subscription application at any time between the IPOs Application Start Date through to the IBHK Application Cut Off Time. Once the IBHK Application Cut Off Time has passed, no further changes can be made. Please note you must have sufficient buying power on your account at IBHK Application Cut Off Time to cover the total cost of subscription application requested or your application will be reduced to a permitted quantity within your buying power.

Whether through the same channel (placement/public offer) or through different banks/brokers, multiple applications are not permitted. Only a single application may be made per beneficial owner. If multiple applications for the benefit of the same beneficial owner are identified or suspected, all the applications may be rejected. Please read the "How to Apply for Public Offer Shares" section of the IPOs prospectus to ensure you understand the application rules.

At this point in time Interactive Brokers Hong Kong Limited is only supporting subscription applications to the Hong Kong Public Offer Shares of IPOs on the HKEX market’s Mainboard.

Interactive Brokers Hong Kong is currently only supporting subscription applications to the public offer shares. If you have applied for, indicated interest, or participated in the placing tranche you cannot apply for shares in the public offering.

On the allotment date you will receive an email to your accounts registered email address to notify you of any shares successfully allocated to you or to confirm that refund monies will be returned to you if you are unsuccessful.

Alternatively, you can log into your account via Client Portal and check the results under the IPO Subscription section.