1. What is an Initial Public Offering (IPO)?

An initial public offering (IPO) is a company's first sale of stocks, bonds or certificates of deposit to the public in order to raise funds for the company. Before subscribing to an IPO, you should peruse the prospectus and compare P/E ratios of peers in the same industry to evaluate the IPO shares.

2. What are the risks associated with IPO?

Over subscription
When IPO is over subscribed, applicants may receive shares allotment much less than application amount.

Under subscription
It is common for IPO applicants to subscribe for a bigger quantity than intended for increased chance of successful shares allotment. However, applicant may receive shares with total quantity applied if IPO is not oversubscribed.

Market risk
Share price may fluctuate from time to time or it may drop below its initial offer price on the first day of listing.

Company risk
It is vital to understand thoughtfully the company and their business you are investing in. You should study the prospectus, financial reports and seek professional advices before you make any investment decision.

IPO cancellation
Applicants should pay the handling fee and/or interests even an IPO has been cancelled for any reason.

3. How do I know the subscription has successfully been submitted?

You can go to IPO via UTRADE Web, and click “e-IPO” to check the number of shares applied before the IPO subscriptions deadline.

4. Can I amend or cancel the IPO subscriptions anytime?

No. Please call your Account Execute to amend or cancel your application.

5. How do I know if my eIPO application is successful?

Your Account Executive will contact you directly for the share allotment results. We will also send a consolidated daily statement to you which states the quantity of allotted shares and the refund amount, if applicable.

6. When should I pay the IPO application charges?

The required amount should be deposited into applicants' trading accounts before 5:00pm on the day of the subscription deadline. If you deposit required amount at the banks or through ATM, you are requested to fax the pay-in slip at fax number: (852) 8208 7388.

7. For the wholly or partially unsuccessful eIPO application, how can I get a full refund or refund on the excess amount?

If your application is wholly or partially unsuccessful, a full refund or a refund of the excess amount will be directly credited into your trading account on the refund date as announced by the issuers.

8. Will I receive physical share certificates if my application is successful? How do I receive the allotted shares if my application is successful or partially successful?

Before the day of listing, the allotted shares will be deposited to your trading account so that the shares can be sold on the day of listing.

9. Can I submit more than one application for the same IPO?

No. Multiple applications or suspected multiple applications will be rejected.

10. I have both individual account and joint account. Can I use both accounts to apply for the same IPO?

No, applying by individual account and joint account for the same IPO will be regarded as multiple applications, which will be rejected.

11. I already have a trading account, but I don’t have an online trading access. What should I do if I would like to apply IPO via UTRADE Web?

Please contact your Account Executive for opening online trading access.

12. What is the operating hours of the eIPO Services?

It is available 24 hours a day. In general, for margin application, the application deadline will be at 4:30pm on the second business day preceding the IPO application deadline (while quantity last). For cash application, the application deadline will be at 2:00pm on the last business day preceding the IPO application deadline. Clients should be aware of the announcements of the respective IPO application schedule.


If there is any enquiry, please contact our Client Service Hotline: (852) 2136 1818.