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IPO subscription statement

1. Ways to subscribe for HK IPOs

1.1 We support IPO subscriptions by cash, FUTU financing, and bank financing.

1.2 Cash subscription refers to clients using solely withdrawable funds on their account to subscribe for IPOs.

1.3 FUTU financing refers to clients using FUTU financing services to increase the buying power for their subscriptions,

including leveraging off their equity positions and unsettled funds.

1.4 Bank financing refers to clients using financing services provided by banks for their IPO subscriptions.

1.5 Both cash and FUTU financing subscriptions are standard subscriptions.

2. IPO Subscription Deadline & Funding Deduction Date

2.1 We process standard subscriptions in batches. Typically, the deadline is at 09:00 on the FUTU subscription cut-off day( same as HKEx cut-off date), though it may extend to 10:30 in certain cases. For applications submitted before 09:00, we start to deduct their funds at 09:00 (10:30 for applications between 09:00 to 10:30).

2.2 The deadline for bank-financed subscriptions is at 16:00 on the cut-off day for requesting bank financing (one day earlier than standard subscriptions).

The final funding deduction date for each subscription may vary because we maintain multiple banks as sources of financing. Please refer to the notifications after you submit each subscription for exact information on funding deduction time.

2.3 You may change or cancel your subscriptions before we start to process your payment.

3. Subscription Processing Fees & Interest Charges

3.1 Applicants are subject to a non-refundable 50 HKD processing fee(100 HKD for bank-financed applicants). This will be charged regardless of the outcome of the subscription. Also, if an IPO gets postponed or canceled, banks may not return the fees and charges related to margin financing.

3.2 Interest incurred by bank financing is calculated as follows: amount financed * interest-bearing day * daily interest rate.

3.2.1 Please refer to the IPO subscription page for the latest information on the interest rate. The interest rate may fluctuate dynamically according to market conditions and the interest rate for your IPO financing will be determined by the time you submit or amend your IPO subscription. You may prevent potential changes in the interest rate by submitting your subscription as soon as possible.

3.2.2 Interest-bearing days count from the deadline for making an IPO subscription to the last calendar day before the announcement of allotment results. After the announcement day, FUTU will return the borrowed amount to the banks. If the market value of your allotted shares is higher than the available funds on your account, you may use FUTU financing services to purchase the rest of the shares. However, if this action escalates your account risk level to Margin Call, we retain the right of forced liquidation. Please be aware of the risk involved.

3.3 Interest incurred by FUTU financing services will be settled monthly with the same interest rate as that of a margin account. You may borrow and return at will. Please refer to your account statement for the final charges.

3.4 If an IPO undergoes postponement or cancellation, we will not return the subscription processing fees and interest charges incurred.

4. Allotment Results and Information on Refund

4.1 Allotment results will appear on your daily statement on the announcement day. If you have been allotted shares and the IPO proves to be successful, you will see your allotted shares in your positions on the announcement day.

4.2 If you apply for a standard subscription and get partially allotted, the unallotted portion of your subscription will be returned back to your account after allotment results. In case of special circumstances, please refer to the exact refund date in accordance with HKEX announcements. 

4.3 If you are using bank financing services for your subscription and the dollar amount of your allotted shares is lower than the amount on your account, we will return the excess part back to your account after allotment results.

5. Risk Reminder for Financing IPOs

5.1 If your account risk level is at Margin Call while in the process of an IPO subscription, FUTU retains the right of forced liquidation. Please be aware of the risk involved.

5.2 Margin financing typically leads to a high leverage ratio, which may increase your account risk level on the offering day. 

Hence, it is important for you to have sufficient liquidity in your account. Otherwise, if your account gets margin called on the offering day, FUTU has the right to sell a portion of your shares in certain cases.

5.3 If your account reaches Margin Call status, you will have to bear the losses incurred from FUTU selling a portion of your shares to protect the security of your account.

6. Declaration

The Client confirms:

Such subscription is the only subscription made for the benefit of the Client in the

same securities issuance, and during the securities issuance, the Client cannot

make other subscriptions at the same time;

Authorize FUTU Singapore to make a statement, declare and guarantee to the exchange that the Client shall not and does not intend to make other subscriptions, and shall not and does not intend to make other subscriptions for the benefit of the Client;

FUTU Singapore relies upon the above guarantees, commitments, and authorizations

to execute the subscription;

FUTU Singapore has no obligation to deliver the listing document ("Prospectus") that sets out the terms and conditions of the newly issued securities to the Client. The Client confirms that the Prospectus has been obtained from elsewhere and has read and understood the terms and conditions in it, and the Client's subscription will not violate these terms and conditions upon subscription. The Client confirms that the Client will not subscribe for newly issued securities unless it is eligible under the applicable securities regulations; and Is not an affiliate of a securities issuer related to the newly issued securities (the definition is under the relevant regulatory rules).