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.
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.
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. Company customers can click here and follow the links to fill in the IPO application form and choose the settlement account from any of their HSBC accounts.
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:
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. The handling charge will be HKD100 if the stock IPO application is through our branches. 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 application money from any of your company’s HSBC savings or current accounts.
There is no payment limit as long as you have deposited enough money for the application in your chosen 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 one 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.
Application money will only be debited from your chosen settlement account on the IPO closing date if the application has been successfully submitted.
No, once you submit the eIPO application, we will start processing it and you cannot amend or cancel your application.
For successful applications, newly allotted securities/bonds/certificates of deposit 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 application money (or part thereof) will be credited back directly to your chosen settlement account within the days specified in the respective Prospectus/Offering Memorandum.