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FAQ for IPO

1. IPO Subscription

1.1 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.

1.2 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.

1.3 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.

1.4  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

1.5 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. 

1.6 Do I need to deposit funds into my Moomoo Financial Inc. account to subscribe to a US IPO?

You don't have to if you have a FUTU HK account. Your total buying power for an IPO subscription is the sum of your buying power in both Moomoo Financial Inc. and FUTU HK accounts. 

If you participate in a US IPO subscription, Moomoo Financial Inc. will freeze your buying power at Moomoo Financial Inc. and FUTU HK. After the allocation, if the frozen amount in your Moomoo Financial Inc. account is not enough for the allocated shares, the system will automatically transfer the rest from your FUTU HK account for the settlement. 

1.7 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. 

1.8 How is my buying power calculated for an IPO?

If you have a FUTU  HK account, your total buying power for an IPO subscription is the sum of your buying power in both Moomoo Financial Inc. and FUTU HK accounts. 

1.9 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. 

1.10 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.

1.11 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.

1.12 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. 

If the frozen amount in your Moomoo Financial Inc. account is not enough for the allocated shares, the system will automatically transfer the rest from your FUTU HK account for the settlement. If the allocated shares' dollar amount is less than the frozen amount, the rest will be released. Please pay attention to your account assets. 

1.13 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.


2. Transfer of Cash and Stocks

2.1 Stock transfer

Currently, Moomoo Financial Inc. doesn't support an outbound transfer of stocks. Please stay tuned for updates.

2.2 Cash transfer

  1) How to transfer cash?

      After selling your allocated shares, the settlement occurs two business days after trade execution day (T+2), and funds will be posted to your Moomoo Financial Inc. account. You can transfer cash via Trade > Moomoo Financial Inc. | US Margin Account > Cash Transfer. After the request is initiated, the amount will be frozen till it successfully transfers to your FUTU HK account. 

  2) Which account am I transferring to?

      Your funds will be transferred to FUTU HK | US Margin Account.

  3) How much money can I transfer to my FUTU HK account?

      Your transferable cash, also known as withdrawable cash, is the settled funds in your Moomoo Financial Inc. account.

  4) How long does it take for funds to arrive?

      Cash transfer will take approximately 1-3 business days. Please pay attention to the changes in your assets.