Concept of US IPO Subscription

Q: What is The Business Model for IPO Subscription?

A: Futu can act as an underwriter or distributor (depending on the specific circumstances of each new stock), submit the order to the lead underwriter and get the shares. Futu will distribute the shares to ordinary investors participating in the subscription after obtaining the final shares on the listing date.


Q: The Rule of Allocation

A: The IPO subscription is based on the inclusive principle and the weighted principle of subscription shares. Try to get as many participants as possible to get the shares, and at the same time, the more customers who subscribe for the number of shares, the easier it will be.


Q: Why the New Shares can be Officially Traded, but The Allocation Result Has not been Obtained or Allocated Shares cannot be Traded?

A: The distribution of US stocks depends on the confirmation processing of the underwriter and the upstream. There may be situations in which the distribution confirmation is completed and the transaction is opened after the formal listing transaction.