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FAQ for IPO

1. U.S. Stock Subscription Account

1.1 Why do I need an account for US IPO subscriptions

The US IPO subscription service is provided by Moomoo Financial Inc.. Investors need to open an account and follow the subscription instructions to participate in US IPO subscriptions. 

Moomoo Financial Inc. is a wholly-owned subsidiary of Futu Holdings Ltd. and a licensed brokerage firm in the United States.

1.2 Is Moomoo Financial Inc. a registered broker

Moomoo Financial Inc. is a wholly-owned subsidiary of Futu Holdings Ltd. and a licensed brokerage firm in the United States. Moomoo Financial Inc. is also a member of FINRA and SIPC regulated by the US Securities and Exchange Commission (SEC). Your account at Moomoo Financial Inc. is protected and supervised by laws and regulations.

1.3 How to open an account for US IPOs

You can open an account via App > Trade > IPO Subscription > US > Open Account.

Please follow the instruction to permit authorization, fill in the required information, complete the risk disclosure, and wait for the approval.


2. IPO Subscription

2.1 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.

2.2 How do I subscribe to an IPO

The IPO subscription is a service provided for individual investors by Moomoo Financial Inc.. 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 the available IPOs via App > Trade > IPO Subscription > US.

2.3 When can I subscribe to an IPO

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 Moomoo Financial Inc. anymore.

2.4  What are the fees for an IPO subscription

IPO subscription fees:

TypeFeesCharging Party
Subscription fees5 USD Free during the promotion periodMoomoo Financial Inc.

Transaction fees: please check Moomoo Financial Inc. Fee Schedule

2.5 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. 

2.6 Am I qualified to participate in a US IPO subscription

According to relevant US regulations, certain groups of people may be considered "Restricted Persons" and cannot participate in the IPO subscription. 

Clients thus need to complete a "Restricted Person Statement" in advance to see if they are qualified for an IPO subscription. Please refer to FINRA Rules for more details. 

2.7 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. 

2.8 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.

Moomoo Financial Inc. adopted general allocation and weighted allocation strategies when re-allocating.

● General allocation: Moomoo Financial Inc. tries to allocate shares to every investor.

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

2.9 When can I get the allocation result

Shares will usually be allocated on the listing date. Moomoo Financial Inc. 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, Moomoo Financial Inc. needs to do the final confirmation with the underwriter before opening trades for IPO shares. Please be aware there might be a delay.

2.10 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 Moomoo Financial Inc. account on the allocation date. 

2.11 How can I trade the IPO shares

Moomoo Financial Inc. supports US IPO subscriptions and trades. You can click Trade > Moomoo Financial Inc. | US Margin Account to check your assets, including stocks and cash.

After the settlement of allocated shares, funds will be posted to your Moomoo Financial Inc. account. You can check your current assets via Trade > Moomoo Financial Inc. | US Margin Account.

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