IBHK offers its qualifying clients the ability to participate in selected Initial Public Offerings ('IPO') in the Hong Kong ('HK') market via the HK public share offerings from the convenience of their IBHK account.
Margin account clients also enjoy the ability to leverage off their portfolios existing cash and equity positions to increase their IPO subscription application buying power on selected IPOs. Cash account clients can pay for their application with available cash or, if they would also like to increase their buying power, make an application to switch their account type to a margin account via the account settings in Account Management.
During the application period clients can use Account Management to provide electronic instructions for Interactive Brokers Hong Kong Limited ("IBHK"), as agent, to submit an application on the client's behalf through the Hong Kong Securities Clearing Company Limited ("HKSCC") Central Clearing and Settlement System ("CCASS"), or via other mechanisms at IBHK's discretion.
Successful share allocations are issued in the HKSCC Nominee Companies name and are available for trading in IBHK client's trading accounts on the listing date. If an application is unsuccessful or partially successful the refunded application monies are credited to back to the client's account.
In order to subscribe for a HK IPO via Interactive Brokers Hong Kong Limited you need to have opened an IBHK trading account. If you do not already have an account with us and intend to apply for an IPO, please ensure you open an account well in advance of the IPO you would like to participate in to allow adequate time for the account opening, approval and funding process. Click here to open an account.
Once you have an account with IBHK you can access the list of all active IPOs that you may participate in by logging into your IBHK Account via Account Management and selecting "IPO Subscription" from under the "Trade" or "Trading" heading on the menu. Please note that if you would like to be eligible to use financing, if offered, for your IPO subscriptions you will need to open a Margin Account.
In order to place an application, click on the IPO you would like to subscribe for and read the prospectus and all supporting documentation in full. After reading the prospectus and other supporting documentation and confirming you meet the eligibility for participating in the offer, you can proceed with applying for one of the prescribed quantity of shares.
Hong Kong public share offers require the full balance of the subscription application money, including fees & levies, be paid upfront at the time of submitting the application. For your application to be accepted by IBHK you need to ensure you have sufficient cash or buying power (if you have a margin account) in your account at both the time of submitting the application and at the IBHK Application Cut Off Time. If you do not have sufficient cash/equity in your account at the IBHK Application Cut Off Time, your subscription application will be reduced or rejected. To avoid such instances, please ensure you have sufficient cash and/or equity in your account to support your application well in advance of the IBHK Application Cut Off Time.
For eligible margin account holders, IBHK may offer financing on selected HK IPOs. Clients who wish to utilize IPO financing, when available, need to have sufficient cash/equity in their account to support the subscription leverage ratio offered at both the time of submitting their application and at the IBHK Application Cut Off Time. For example, if the leverage ratio is 10:1, clients must have available equity equivalent to at least 1/10th of the total value of the IPO shares they are applying for.
Clients that use IPO financing will have the full amount of the subscription withdrawn from their account at the IBHK Application Cut Off Time. Interest will be charged on the financed portion of the subscription amount at the standard IB rates, which may fluctuate with the market, plus an IPO subscription surcharge. The IPO surcharge for a specific IPO will be confirmed at the time of submitting a subscription. Clients with sufficient HKD cash to cover the total cost of their subscription from the IBHK Application Cut Off Time to the Allocation date will not be charged interest related to their subscription application. Any interest charge will be visible in client statements.
Between the IBHK Application Cut Off Time and the Allocation/Refund date funds cannot be withdrawn from margin account clients' accounts. However, clients will still be able to trade with their available liquidity. IBHK reserves a buffer attributed to the subscription application made for the purpose of covering the allocation cost and will not liquidate positions between the IBHK Application Cut Off Time and the refund being processed. Normal liquidation rules will still apply for other trading activity.
The amount of IPO financing available to clients for supported IPOs is finite. When maximum financing levels are reached, additional subscription orders requiring debit financing will be rejected and only fully paid orders will be accepted for the remainder of the IPOs application period. For those clients that wish to use available financing we encourage subscriptions applications to be placed as early as possible.
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 of 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 Account Management and select "IPO Subscription" from under the "Trade" or "Trading" 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 Account Management, its listing details may not be publicly available yet. If the IPO details are publicly available but you cannot see the IPO in Account Management, 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 Account Management and select "IPO Subscription" from under the heading "Trade" or "Trading" 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 Account Management 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 Account Management, 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 CCASS 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 my logging in to Account Management 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 the 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 of 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 markets Mainboard and GEM boards.
Interactive Brokers Hong Kong is currently only supporting subscription applications to the public offer shares. If you have applied for or 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 Account management and check the results under the IPO Subscription section.
|HK Public Subscription Application Fees & Levy's|
|Brokerage Fee||1% of value of any successful allocation of shares.|
|SFC Transaction Levy||0.0027% of value of any successful allocation of shares.|
|FRC Transaction Levy||0.00015% of value of any successful allocation of the shares.|
|Hong Kong Stock Exchange Trading Fee||0.005% of value of any successful allocation of shares.|
|Application Processing Fee||Submitted applications are subject to a non refundable HKD 100 processing charge. This will be charged regardless of the outcome of your application.|
Note: If you are using margin fund your HK IPO application, in addition to the above application fees you will be chargedinterest on your margin loan balance at the current Benchmark Rate + the variable IPO Surcharge rate.
The below calculator is provided to give a rough estimation, based on the values you input for calculation, of the potential funds required and the associated costs of making an application to subscribe to shares offered via the public offering of a Hong Kong IPO. It is for your reference only. IBHK does not guarantee the accuracy of the results generated by this calculator and the results should not be relied upon when making your decision.
Enter all dollar values in Hong Kong Dollars(HKD)