What is an IPO?

An IPO, also known as an “Initial Public Offering,” refers to a company's initial public offering of stock to a public investor, transforming it from a private company into a publicly traded company. In general, an IPO is one of the financing methods for a company to raise funds, expand its business, or increase brand awareness.

What are the benefits of IPO?

Potential High Returns

The IPO market is heating up, again causing widespread market attention. In order to successfully enter the market, most companies are willing to discount issues, so that there is a window of opportunity to subscribe for new shares. If the company performs well, the share price can skyrocket quickly, giving investors the opportunity to make significant profits in the short term.

Participate in emerging and long-term value-added companies

If investors are able to hold the shares of potential growth companies early and keep them unsold, the company can achieve long-term asset appreciation as long as the company continues to grow after the listing, not only if it is convenient to receive dividends (assuming the company has a dividend)!

Do you have to earn on a IPO?

IPO investments come with risks such as high market volatility, uncertain company performance, etc., so decide to do your homework before you start. However, in perspective, the new share subscriptions as of 25 October 2024, with first-day earnings of up to HK$6500, are broadly optimistic.

Latest IPO Timetable

Do you want to know in advance about the upcoming IPO and the companies that will be listed on the day so that you can do your homework early? See it nowIPO of Hong Kong sharesandU.S. IPOListing Schedule >>

Key dates for IPO of Biti IPO

As an investor, a company listed on the Hong Kong Stock Exchange, there are 7 key days to look out for:

1. Application Date: Normally 3 to 4 days from the start of the order date to the application deadline. To subscribe for new shares, please participate during the subscription period. The IPO date will be indicated in the prospectus in the prospectus.

2. Pricing Date: Pricing, the final issue price will be prepared jointly by the listed company and the underwriter after the closing date of the IPO. The pricing day is generally the trading day after the closing date for the new share application or the closing date.

3. Announcement of IPO: Listed companies will issue a notice of distribution of new shares on the trading day preceding the IPO date.

4th. New Share Listing Day: New Share Listing Day is the first day of IPO.

5. Green Shoes Protection Period: New shares with excess allotments may be exercised by the investment bank within 1 month from the subscription deadline. If the share price breaks during this period, the investment bank can buy support shares; if the share price rises, the listed company adds new shares to the investment bank.

6. Restraint period for cornerstone investors: If a company introduces a cornerstone investor prior to listing, in general, there is a six-month ban period, i.e. within 6 months after the listing date, the shares purchased by the cornerstone investor cannot be sold, and the listed company may also agree to a longer ban period with the cornerstone investor.

7. PROHIBITION PERIOD FOR MAJOR SHAREHOLDERS OF LISTED COMPANIES: NEW SHARES LISTED ON THE HKEX MAIN BOARD HAVE A 6-MONTH BAN FROM THE DATE OF IPO; MAJOR SHAREHOLDERS HAVE A 2-YEAR BAN ON NEW SHARES LISTED ON THE HKEX START-UP BOARD FROM THE DATE OF IPO.

How to Subtract New Shares

There are two main types of share withdrawal methods: ordinary purchase and bank financing purchase. Futu also offers new share purchase services:

How to choose two subscription methods?

How do I increase my subscription rate?

When a new stock is popular and unsolicited, and you have a good look at its prospects, do you want to increase your chances of intermediation when you place a new stock? You can choose to subscribe by margin method! Now, with bank financing, you can get leverage of up to 50 times or more, the higher the leverage multiplier, the higher the margin, but of course the greater the opportunity, the higher the risk.

IPO Fees - 0 Interest 0 Handling Fees IPO Tutorial

Want to renew shares at a lower cost? Below is a strategy for purchasing new shares with 0 or 0 ongoing fees! If you purchase with ordinary cash (cash), you will be able to make a universal purchase (Futu Finance), if you need to pay 6.8% annual interest. If you buy through bank financing, you can free up bank financial assets, just pay a manual fee of HK$100 per pen! You can choose the most suitable and best buying method according to your investment needs.

Learn more0 Interest 0 Handling Fee

IPO Related Terms

1. GROUP A B: THE NUMBER OF SHARES ELIGIBLE FOR SUBSCRIPTION BY APPLICANTS PARTICIPATING IN THE PUBLIC OFFERING SHALL BE A, GROUP B (ALSO REFERRED TO AS GROUP A AND B). Group A, commonly referred to as “retail customers”, means subscriptions of less than $5 million; group B, known as “general accounts”, are subscribed for more than $5 million.

2. TOP NOTCH: MAXIMUM SUBSCRIPTION, I.E. HALF OF THE NUMBER OF SUBSCRIPTIONS FOR INITIAL PUBLIC OFFERINGS (NOT COUNTED BACK). IN OTHER WORDS, THE PERSON WHO SUBSCRIBES THE MOST SHARES IN GROUP B IS CALLED THE HEAD HAMMER

3. One-hand hold rate: The probability that only one hand is ordered and then withdrawn

4. FINI: It is a public recruitment platform developed by HKEX. Market participants and regulatory bodies can jointly manage the calculation process for initial public tender shares (known as public tender shares) on the same platform, shortening the time for new share pricing to start trading. Thanks to the birth of the FINI system, investors use Futu to purchase new shares at a 0% rate, increasing the yield

• Terms and Conditions:

  ULTRA-HIGH LEVERAGE ONLY APPLIES TO CERTAIN NEW STOCKS. Although high leverage can bring high returns, it also comes with some risk. Consider your risk tolerance and investment goals, and ensure you maintain sufficient assets to cope with market fluctuations.

  The new share buybacks are subject to Bank Expansion Limited, and Futu and Futuro's real earnings will be displayed on the purchase page. 0Manual fee refers to the cash purchase and/or the Futu Expansion Procurement Option 0 application fee.