What is HK IPO?

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.

What is the Prospectus for?  How to get it?

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.

An electronic copy of the HK IPO Prospectus can be accessed through BOOM website.

How many days is the application period of a HK IPO?

In general, the application period of a HK IPO is only 3.5 business days.

How do I know when a HK IPO is available for subscription?

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!

Can I apply for any number of shares I want to?

No. You can only apply for the number of shares as specified by the issuer. 

Why the payment amount is more than the value of shares I apply?

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.

When do I pay for the subscription?

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.

Will I get all the shares I apply for?

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.

What is the allotment basis?

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.

Why reject my application?

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.