When investors subscribe for shares of a company to be listed on the Singapore stock market, the process is known as SG IPO subscription.
But how to participate in it exactly?
There are mainly three stages involved: share offering, share allotment, and public trading.
Stage 1 Share Offering
This process typically lasts for 5-14 days. During this period, investors can subscribe for the IPO shares at any time.
If you subscribe for IPOs with Futu, the process takes four steps.
Open [moomoo] app, enter [Trade] page, and tap [IPO Subscription].
Tap [SG], select an IPO you're interested in, and tap [To Subs].
Enter the number of shares you hope to buy.
After reading through the risk disclosures, tap [Submit].
Enter your trading password, and the subscription is completed.
Stage 2 Share Allotment
Before we dive into details, let's first look at how new shares are allotted.
Futu, as a brokerage firm, gets the quota from the designated underwriters, and then allocate shares to the clients who have subscribed.
In some cases, Futu will also act as an underwriter to get the quota directly from the company.
Shares will be allotted fairly and inclusively, working to help all the investors can get at least some of the subscribed shares.
On top of that, the brokerage will then adopt a weighting approach, providing more shares for investors with more subscriptions.
Allotment results will generally be announced 3-5 days after the offering ends, which is one trading day prior to the IPO date.
After conducting the allotment, Futu will announce the results.
Investors who have subscribed can check the results in the [History] on the IPO Subscription page.
Stage 3 Public Trading
Generally, allotted shares can be traded freely on the market on the next trading day after the announcement.