FAQs

Q1: What are the requirements for individuals to participate in HK SPAC IPOs?

A: You need to qualify as a professional investor.

Q2: What is the trading unit for an HK SPAC IPO?

A: The minimum trading amount is HK$1 million.

Q3: What are the allocation rules for an HK SPAC IPO?

A: There's no universal allotment rule for HK SPACs. We cannot guarantee the number of shares allotted to you as this depends on the sponsor and underwriter. There are chances that you may not be allotted shares or you may be allotted 100% of the shares you requested.

Q4: Is grey market trading supported for HK SPAC IPOs?

A: Grey market trading is not supported, but professional investors can sell SPAC shares after the market opens on the IPO day.

Q5: Can I use FUTU financing to participate in HK SPAC IPOs?

A: You can use FUTU Financing (i.e. unified buying power) to participate in HK SPAC IPOs.

Q6: Will there be any interest if I use FUTU Financing to participate in HK SPAC IPOs?

A: Prior to the payment day, which is scheduled after the day of announcing allotment results, your subscription funds will be frozen and no interest will be incurred.  FUTU Financing will be used If your withdrawable cash on the payment day is less than the amount required when you are allotted shares. The interest generated by using Futu financing will be settled monthly and will be shown in the statements of your HK margin account. Usually, the interest rate is 6.8% per annum. You may borrow or repay a financing loan at any time. As long as you have enough cash withdrawable in your account at the time of debiting funds for the allotment, no financing interest will be charged.

Q7: Is there anything to note after participating in an HK SPAC IPO or being allotted SPAC shares?

A: No matter whether you are allotted shares, it is strictly prohibited to disclose any information relating to the offering to any third party or on any public occasion or social media platform, including Futubull Community and WeChat Moments.

Q8: What will be the consequences if I post a screenshot of the allotment results on social network sites and attract numerous reposts? 

A: Investors are bound by confidentiality obligations regarding the details about the international offering. Violations may result in the cancellation of the shares allotted to you or your disqualification from future international offerings. If any losses are caused to the company due to your violations, you shall be liable for such losses.

Q9: Are the affiliated persons of a SPAC and their close associates allowed to trade the listed SPAC securities before completing the merger?

A: No.

Q10: Is it possible to tell the operational advantages or risks of the target company to be merged with on the SPAC IPO day?

A: No. There is not a definite target company on the IPO day of a SPAC, and the target company is not limited to a specific industry, field, or geographical area. As a result, you will not be able to tell the operational advantages or risks of the target company.

Q11: What is the time frame for a SPAC to complete the merger?

A: A SPAC needs to announce the merger within 24 months after the IPO date and complete the merger within 36 months after the IPO date, with a possible extension of up to six months. If the above conditions cannot be met, the HKEX may apply a trading halt to the SPAC and request the SPAC to return the funds raised from the IPO to all SPAC shareholders within one month after the trading halt.