Frequently Asked Questions about Hong Kong IPO for Malaysian

Have you ever heard of Autocount? 
​It is one of the best IPO performers this year. Autocount was listed on the Malaysian stock market in April 2023. Its stock price rose by over 120% on the first day and the IPO was oversubscribed 167 times.​

​Good News! Hong Kong IPO subscription will be launched on M+Global. Now you are capable of exploring global opportunities!

In 2021, Kuaishou Technology (1024.HK), China's leading short-form video app platform rose over 160% on its first day of listing. The stock prices of Morimatsu International Holding Co Ltd (2155. HK) and New Horizon Health Ltd (6606. HK) gained over 250% and 200% respectively on their first day. If you're an investor looking to expand your investing horizons, then the Hong Kong IPO is the perfect opportunity for you.

Do you want to join the Hong Kong IPO game?
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Before you do, there are 6 essential questions and answers you need to know. 

1. How long does the IPO process in the Hong Kong stock market take - from application to the announcement of IPO allotment, and investors trading the allotted shares?

The process for a company to be listed begins with the submission of the IPO application form to the Hong Kong Stock Exchange, which will take about half a year for hearings and roadshows. As for IPO subscription, listing, and trading of the allotted shares, it will take 1 to 2 weeks.

M+ Global offers two subscription methods: cash and margin financing.

For cash subscriptions, M+ Global charges a handling fee for each transaction.
You can also opt for financing subscriptions to increase leverage if you have insufficient cash available.

As an example, if you have HKD20,000 and plan to put up a 5-fold margin, your total fund amount will become HKD100,000, of which HKD80,000 is lent to you by M+ Global.
Please note that M+ Global also charges a fee for margin financing subscriptions and that the entry fee will be refunded to your account if you fail to receive any allotment. However, the handling fee and margin interest will not be refunded.

2. Which institutions endorse IPO listing in Hong Kong? Are they reliable?

When a company plans to go public, it partners with investment banks to facilitate the listing process. Investment banks provide essential services like formulating financing plans, conducting due diligence, reviewing financial forecasts, organizing roadshows, setting stock prices, drafting prospectuses, and more. Key players in this process are underwriters and sponsors, often established domestic and foreign banks licensed in locations like Hong Kong. Notable names include Goldman Sachs, HSBC, Merrill Lynch, Morgan Stanley, BNP Paribas, and CICC. These institutions are central to the listing journey, functioning as guardians of the company, navigating challenges and successes hand in hand. Their endorsement lends credibility, mitigating concerns about the listed company's business risks.

3. If I get an allotment, how many shares does that include?
At least one board lot will be given to those who have successfully got the allotment. One board lot comprises 100, 500 or 1000 shares, depending on the proportion of each stock. The biggest individual investor in HK IPOs with the most lots is called the "top mallet".

4. How to gain short-term profit after getting an allotment?
Short-term investors who have subscribed to HK IPOs and managed to get an allotment have two trading options:

• Sell during the grey market period of the trading day before listing.
• Sell on the day of listing.

​​What is grey market trading? It mainly exists in the HK stock market, and is an informal trading market organized by securities firms from 4.15pm to 6.30pm on the trading day before the official listing of new shares. The shares can only be sold when it is listed without a grey market.

5. How to check IPO information disclosure, including its prospectus?
Apart from visiting the investor relations section of a company's website, you can check out HKEX news at https://www.hkexnews.hk/index.htm.

6. With the current HK stock market experiencing a downturn, will I get good returns by subscribing to HK IPOs?

In the history of the Hong Kong stock market, there have been instances of strong IPO market performance despite overall market declines:

1. Global Financial Crisis (2008): Despite poor market performance during the crisis, 42 companies listed in HK that year. 21 of these IPOs saw their issue prices rise by over 50%, yielding an average return of 15.7%.
2. Golden Age (2012-2013): The HK IPO market defied trends, reaching its peak in 2013 after 240 companies listed over two years. Notable IPOs yielded average returns of 4.4% (2012) and around 24.2% (2013).
3. Resilience in 2020: Despite the Covid-19 pandemic's impact on the global economy, the HK IPO market remained adaptable. High-quality companies listed, yielding an average return of about 11.1%, surpassing the 7.1% average in 2019.

It's important to highlight that IPO returns involve higher risk. Investors should approach them rationally, considering factors such as a stock's financials, business model, industry trends, and market conditions. This approach reduces risks, enhances opportunities, and aims for better returns.

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We will launch the HONG KONG IPO Subscription service in M+ Global very soon.

Click on the Registration Link to register online now: https://m.global.mplusonline.com/kh/status/entry/transit?_scnl=UBZQ

My Invitation Code: UBZQ

Make sure you have entered my Invitation Code. So you will receive all my FREE services once your account successfully registered. 

Don't miss it again!

Meanwhile, you also can view my previous blog post on IPO Investing in Malaysia.

Thank you!
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