Stock eIPO

IPO stands for Initial Public Offering. It is the first time a company issues securities/bonds to investors. The newly issued securities/bonds may be listed on a stock exchange.

Over-subscribing to an IPO

In some cases, IPOs may be oversubscribed. The company may go through a balloting/allocation process to determine whether an investor will receive any securities and if so, in what quantity. An investor may be tempted to subscribe for a greater quantity than he intended to, believing that he will not receive the full amount in case of over-subscription. However if the IPO is not oversubscribed, the investor will receive all the quantity applied for and will have to pay the full cost.

Market risk

There is a risk that the company's share price will drop below its initial IPO price, once the company's securities/bonds trading (on the stock market or otherwise) commences. Securities/bond/ prices will fluctuate over time.

Company risk

It is vital to understand the company and the business you are investing in. Thoroughly study the prospectus, financial reports and even seek professional advice before you make investment decisions. For more information on investing, visit our Investment Services.

It is a service open for HSBC Investment Services/Securities account holders to subscribe for newly listed/issued securities/bonds/certificates of deposits in IPO in the name of HSBC Nominees (Hong Kong) Limited.

HSBC would like to provide you with the greatest convenience. If you choose to apply for securities with HSBC IPO Nominees Services (to do so, you must maintain an Investment Services/Securities account with HSBC), we will help you through with the whole application process, and you may enjoy the following benefits:

• Payment Convenience - you can choose to pay the application money from any of your company’s HSBC account and we will directly debit your account, saving much of your time in payment arrangement.
• Earliest Availability - your allotted securities/bonds/certificates of deposit will be directly credited into your Investment Services/Securities account on the first listing/issue day, which will allow you to take immediate actions according to market conditions.
• Refund Convenience - any refund of the application money will be directly credited to your payment account.

Yes, to apply through HSBC IPO Nominees Services, you need to maintain an Investment Services/Securities account with the Bank. The securities/bonds/certificates of deposit allotted will be directly deposited into the Investment Services/Securities account with the Bank. Unless otherwise specified, there will be a handling charge of HKD50 for every stock IPO application through HSBC Business Internet Banking. There may also be other charges in respect of individual IPO. Please refer to the details of respective IPO at the eIPO Centre.

With HSBC IPO Nominees Services, you can choose to debit the IPO application fees from any of your HSBC savings or current accounts.

There is no payment limit as long as you've deposited enough money for the application in your selected settlement account. However, you should ensure that there are sufficient funds in the account to cover the full subscription cost no later than 12 midnight on the day which is 1 business day prior to the closing date of the public offer period, otherwise, your IPO application will be cancelled accordingly.

Yes, it is a round-the-clock service and you can submit your application online for the particular IPO anytime within the specified HSBC IPO Nominees Services offering period.

You can check the Status page, if your IPO application is submitted successfully, it will show “Application submitted”.

You cannot amend a stock IPO application, but you can cancel a stock IPO and submit a new application* before the cut-off time.

To cancel an applied stock IPO, you can find the stock IPO application in the Status page and then click the “Cancel” button.

^{*Only applicable to any IPO processed via the Fast Interface for New Issuance (FINI) platform.}

For successful IPO applications, newly allotted stocks will be credited into your Investment Services / Securities on the issue date. You can then take immediate action according to market conditions.

For partially successful and wholly unsuccessful applications, the IPO application fees (or part thereof) will be credited directly back to your selected settlement account within the days specified in the respective prospectus / offering memorandum.

Total share cost = price per share * number of shares applied

Total amount of payment = total share cost + brokerage + handling charge (if any) + Securities and Futures Commission (SFC) transaction levy + Stock Exchange trading fee + Accounting and Financial Reporting Council (AFRC) transaction levy

The amount of funds you should hold in your settlement account is the total amount of payment rounded up to nearest integer. Please note that the actual settlement amount may be greater than or lower than the amount calculated in the formulas above.

Application status explains the status of your IPO application, please refer to the following table for further details:

Application submitted
   You've successfully submitted your IPO application.

Pending capture
   Your IPO application is pending to be processed. You can go to Status to keep track of the IPO application status.

Application rejected
   Your IPO application has been rejected. If you want to apply this IPO, please resubmit the IPO application before the cut-off time.

Pending cancellation
   Your IPO application is pending to be cancelled. You can go to Status to keep track of the application status. If you want to reapply the IPO, you can submit another application once the IPO application is successfully cancelled.

Cancellation rejected
   Your IPO cancellation has been rejected. Please note your IPO application will proceed.

Cancelled
   Your IPO application has been cancelled. If you didn't initiate the cancellation, it may be due to insufficient fund in your settlement account. If you have any enquiries, please contact your relationship manager or contact our 24-hour Commercial Banking Service Hotline at (852) 2748 8288.

Fully Allotted
   Your IPO application is fully allotted with the shares. You can go to Status to view more details.

Partially allotted
   Your IPO application is partially allotted with the shares. You'll receive refund of the excess subscription funds in your settlement account. You can go to Status to view more details.

No allotment
   Your IPO application isn't allotted with any shares.

Call off
   The issuer has decided to postpone or cancel the IPO. Please refer to the announcement from the issuer for further details.