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Securities Market
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Initial Public Offering (IPO)
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11. |
How can investors get the names of companies whose listing is pending?
Listing schedules and listing destinations are business decisions of the companies. The potential companies will make public announcements of their listing plans after they have obtained listing approval from the Stock Exchange. The Stock Exchange will not make announcement on behalf of the companies regarding their listing plans and schedules.
Both Main Board and GEM listed companies are required to post their announcements, listing documents and prospectuses onto the HKExnews website and GEM website. Main Board issuers may and GEM issuers which have maintained their own websites must post the documents on their websites (if they exist).
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How can investors obtain prospectuses and subscription forms for initial public offering (IPO)?
Distribution points of prospectuses and subscription forms for IPO are set out in the prospectus of issuers. The Listing Rules also allow prospectuses to be distributed electronically as long as printed copies are also available in the market. Investors can refer to the New Listings under the Listing Matters and Listed Companies section on the HKEx website or the HKExnews website for New Listing Announcements and the Prospectus of a company.
Investors can also check with the sponsor(s) or underwriter(s) or receiving banks for details about distribution of prospectuses and subscription forms as well as application procedures.
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Which forms should investors use to subscribe for new shares? White or Yellow Forms? What is the difference?
Investors can use either the White or Yellow Form to subscribe for new shares but not both forms. Multiple or suspected multiple applications are liable to be rejected.
Investors who want the physical Hong Kong Offer Shares to be issued in their names should use the White Form while those who want the Hong Kong Offer Shares to be deposited directly into CCASS and registered in the name of HKSCC Nominees Limited should use the Yellow Form.
The main difference between the White and Yellow Form is that the White Form subscriber usually has to wait for the mailing of physical share certificates and will normally trade the stock only after receiving the share certificates and having them deposited with a bank or brokerage firm. Investors may not be able to catch the first trading day as they may not have received the physical shares certificates before trading of the new shares commences. However, as the allotted shares of Yellow Form subscribers have already been deposited into CCASS, they can trade the stocks through their brokers on the first trading day of the new issues.
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What are multiple applications?
In Hong Kong public offerings, an application is liable to be rejected if the investor has made more than one application (even for joint name application).
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How to apply for new shares electronically through HKEx?
Under the Electronic Initial Public Offering (eIPO) system, investor participants in CCASS can call the CCASS Phone Operations Hotline or use the CCASS Internet System (https://ip.ccass.com) to apply for new shares. Investors, who have not opened Investor Accounts in CCASS, can contact their brokers to apply for new shares electronically.
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How to obtain IPO allotment results?
Investors can check the IPO allotment results from share registrars. The information is also published in newspapers designated by the issuers and the same notice will be posted on the HKExnews website. The IPO allotment result must carry the subscription ratio, the basis and the result of allotment. Main Board listed companies are required to publish the allotment result in designated Chinese and English language newspapers before trading trading of the new shares commences. The allotment result for GEM listed companies will be available on the GEM website.
However, to reduce risks to investors and other parties involved in the IPO, the global market trend is to shorten the period between IPO processing and the day of trading commencement. In light of this Therefore, the Stock Exchange will require Main Board listed company to publish the allotment results with the full list of successful subscribers in Chinese and English newspapers and on the Exchange's website if the information is announced only one day ahead of the first trading day. The allotment result for GEM listed companies will be available on the GEM website.
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What should an investor do if he subscribed for a new share issue and received neither the return of his cheque nor a share certificate after trading in the company's shares started?
In applying for shares, investors should note how and when the results of applications will be announced. These are stated in the prospectus and application forms. If an investor fails to receive any notice after the stated time, he should check with the sponsor or share registrar of the new issue.
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How can investors dispose of securities acquired at IPO?
Trading on the Stock Exchange, including disposing of securities acquired at IPO, is conducted through the Stock Exchange's trading system which is accessible only by Stock Exchange Participants. Investors may refer to the List of Stock Exchange Participants and Holders of Stock Exchange Trading Rights when selecting a securities company. |
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