Hong Kong Exchanges and Clearing (HKEx) today (Friday) announced the introduction of an Internet Initial Public Offering (iIPO) service to provide individual investors with an additional electronic mechanism for submitting applications for initial public offerings.

The iIPO service will be available to investors who have maintained accounts with participating JETCO member banks, Joint Electronic Teller Services Limited, or EPSCO, Electronic Payment Services Company (Hong Kong) Limited. Users of the service can choose to settle their share applications on-line via EPSCO's Payment-by-Phone On Internet Service, or off-line via the JETCO network of automated teller machines (ATMs). Investors can also make off-line payments via phone banking or ibanking services provided by banks connected to JETCO network. No transaction costs or handling fees will be charged to share applicants by HKEx.

"Through iIPO, investors can submit their share applications 24 hours a day in a secure environment until the closing of the offerings, without the need to queue to submit share application forms," a spokesman for HKEx said.

Investors who subscribe for new shares via the iIPO service will receive scrip registered in their own names. They will be entitled to all rights available to investors applying for new shares on white forms, such as retail discounts offered by the listed issuers.

"The service will help brokers eliminate manual work in handling public share subscriptions. HKEx expects the utilisation of the service will grow as the market and more investors adapt to the new channel," the spokesman added.

The iIPO service will be available to the public from 22 September, Friday.