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US IPO subscription

1. What is an IPO subscription?

A company's going public, also known as a company's initial public offering (IPO), refers to the company's initial offering of shares to the public at an estimated price range to raise capital from the public. Public investors who subscribed to IPOs may get an opportunity to buy the new stock at the actual offering price on the listing date.


2. How do I subscribe for a US IPO?

US IPO subscription is an innovative service provided for retail investors by FUTU SG. After we receive an allocation from the underwriter, we will re-allocate to individual investors. We aim to offer every investor an opportunity to participate in the IPO subscriptions.

Investors can check available IPOs via App > Trade > IPO Subscription > US.


3. Can retail investors subscribe for US IPOs?

You may subscribe for US IPOs only if you are qualified as an Accredited Investor. For non-Accredited Investors, the minimum investment amount for these IPO subscription is 200,000 SGD or equivalent. 


4. What are the start dates and deadlines for US IPO subscriptions?

The start time of an IPO subscription depends on the time of IPO roadshows arranged by the company as well as the underwriter, and it may vary for each stock. Please refer to the subscription details for the opening time.

The subscription time of an IPO may be uncertain and usually relatively short. It may start just 1-2 days before the IPO. If the IPO is over-subscribed, the underwriter may stop accepting the IPO subscriptions in advance, and investors won't be able to subscribe via FUTU SG anymore.


5. What are the fees for an IPO subscription?

IPO subscription fees:

Transaction fees: please see the ''U.S. Stocks and ETFs'' section in our help center for more information.


6. What is the minimum quantity I can subscribe?

The minimum number of subscribed shares may vary, usually 20 or 50 shares, depending on the size of new stocks. 

Please refer to the IPO subscription page for more details. 


7. How to calculate my account buying power?

Your buying power for US IPOs is calculated based on the assets on your FUTU SG account. Please refer to the page for US IPO subscriptions on your app for further information.


8. How can I cancel my IPO subscription?

You may cancel your subscription before the expected deadline. Also, you can amend your subscription after canceling the initial subscription and re-submit the revised version. Please be aware of the expected deadline on the IPO subscription page.

You can check your subscription history via Trade > IPO Subscription > US > History. Please click Cancel if you would like to make a cancellation.


9. How are allocations determined?

It is hard for individual investors to purchase US IPOs directly. However, they can get new shares via allocations, which are determined by underwriters and brokers. After brokers receive allocations, they will re-allocate shares to individual investors. There is no uniform rule for allocations.

FUTU SG adopted general allocation and weighted allocation strategies when re-allocating.

General allocation: FUTU SG tries to allocate shares to every investor.

Weighted allocation: Investors who subscribed for a greater quantity will be allocated more shares.


10. When can I get the allocation result?

Shares will usually be allocated on the listing date. FUTU SG will re-allocate shares to investors once we receive the allocation from the underwriter and then announce the allocation results.

You can check your allocation result via the Subscription Record page or the system notification. 

Note: After announcing the allocation results, FUTU SG needs to do the final confirmation with the underwriter before opening trades for IPO shares. Please be aware there might be a delay.

When will my funds get released if the allocated shares' dollar amount is less than the frozen amount?

The allocated shares' dollar amount will be debited from your FUTU SG account on the allocation date. If the allocated shares' dollar amount is less than the frozen amount, the rest will be released. Please pay attention to your account assets. 


11. How can I trade IPO shares?

FUTU SG supports US IPO subscriptions and trades. 

You can click on Trade > FUTU SG | US margin account, or click on Trade > FUTU SG | Securities Account to check your portfolio, including stocks and cash.

Note: After announcing the allocation results, FUTU SG needs to do the final confirmation with the underwriter before opening trades for IPO shares. Please be aware there might be a delay.