eIPO Frequently Asked Questions

A1: What is an IPO?

A2: What are the risks associated with IPOs?
A3: What is HSBC IPO Nominees Services?
A4: What are the benefits of applying with HSBC IPO Nominees Services?
A5: Do I need to register with HSBC if I apply through HSBC IPO Nominees Services? Is there
any service charge or handling fee?
A6: How can I make the application payment for the application? Is there any maximum
payment limit applicable?
A7: Is online IPO application available 24 hours a day?
A8: How do I know if whether my application has been successfully submitted?
A9: Can I amend or cancel my application?
A10: How do I know if my application is successful or not?
A11: How will I be refunded should my application be partially successful or wholly
unsuccessful?

A1: What is an IPO?

IPO stands for Initial Public Offering. It is the first time a company issues securities/bonds to
investors. The newly issued securities/bonds may be listed on a stock exchange.

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A2: What are the risks associated with IPOs?

Over-subscribing to an IPO
In some cases, IPOs may be oversubscribed. The company may go through a balloting/allocation
process to determine whether an investor will receive any securities and if so, in what quantity.
An investor may be tempted to subscribe for a greater quantity than he intended to, believing that
he will not receive the full amount in case of over-subscription. However if the IPO is not
oversubscribed, the investor will receive all the quantity applied for and will have to pay the full
cost.

Market risk
There is a risk that the company's share price will drop below its initial IPO price, once the
company's securities/bonds trading (on the stock market or otherwise) commences.
Securities/bond/ prices will fluctuate over time.

Company risk
It is vital to understand the company and the business you are investing in. Thoroughly study the
prospectus, financial reports and even seek professional advice before you make investment
decisions. For more information on investing, visit our Investment Services.
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A3: What is HSBC IPO Nominees Services?

It is a service open for HSBC Investment Services/Securities account holders to subscribe for
newly listed/issued securities/bonds/certificates of deposits in IPO in HSBC Nominee's name.
Company customers can click here and follow the links to fill in the IPO application form and
choose the settlement account from any of their HSBC accounts.

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A4: What are the benefits of applying with HSBC IPO Nominees Services?
HSBC would like to provide you with the greatest convenience. If you choose to apply for
securities with HSBC IPO Nominees Services (to do so, you must maintain an Investment
Services/Securities account with HSBC), we will help you through with the whole application
process, and you may enjoy the following benefits:

 Payment Convenience - you can choose to pay the application money from any of your
company’s HSBC account and we will directly debit your account, saving much of your
time in payment arrangement.

 Earliest Availability - your allotted securities/bonds/certificates of deposit will be directly

credited into your Investment Services/Securities account on the first listing/issue day,
which will allow you to take immediate actions according to market conditions.

 Refund Convenience - any refund of the application money will be directly credited to
your payment account.

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A5: Do I need to register with HSBC if I apply through HSBC IPO Nominees Services? Is
there any service charge or handling fee?
Yes, to apply through HSBC IPO Nominees Services, you need to maintain an Investment
Services/ Securities account with the Bank. The securities/bonds/certificates of deposit allotted
will be directly deposited into the Investment Services/Securities account with the Bank. Unless
otherwise specified, there will be a handling charge of HKD50 for every stock IPO application
through HSBC Business Internet Banking. The handling charge will be HKD100 if the stock IPO
application is through our branches. There may also be other charges in respect of individual
IPO. Please refer to the details of respective IPO at the eIPO Centre.

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A6: How can I make the application payment for the application? Is there any maximum
payment limit applicable?
With HSBC IPO Nominees Services, you can choose to debit the application money from any of
your company’s HSBC savings or current accounts.
There is no payment limit as long as you have deposited enough money for the application in
your chosen settlement account. However, you should ensure that there are sufficient funds in the
account to cover the full subscription cost no later than 12 midnight on the day which is one
business day prior to the closing date of the public offer period, otherwise, your IPO application
will be cancelled accordingly.

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A7: Is online IPO application available 24 hours a day?

Yes, it is a round-the-clock service and you can submit your application online for the particular
IPO anytime within the specified HSBC IPO Nominees Services offering period.

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A8: How do I know if whether my application has been successfully submitted?

Application money will only be debited from your chosen settlement account on the IPO closing
date if the application has been successfully submitted.

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A9: Can I amend or cancel my application?

No, once you submit the eIPO application, we will start processing it and you cannot amend or
cancel your application.

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A10: How do I know if my application is successful or not?

For successful applications, newly allotted securities/bonds/certificates of deposit will be
credited into your Investment Services/Securities on the Issue Date. You can then take
immediate action according to market conditions.

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A11: How will I be refunded should my application be partially successful or wholly
unsuccessful?
For partially successful and wholly unsuccessful applications, the application money (or part
thereof) will be credited back directly to your chosen settlement account within the days
specified in the respective Prospectus/Offering Memorandum.

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BillPay
Sit back and pay your bills without the hassle of long queues
 Overview
 List of Billers
 Details needed to pay bills online

Overview

Forget about going through traffic jams and long queues. Paying bills is just a few clicks away with RHB
Internet Banking! From utility bills to monthly installments, you'll never miss a bill payment again.

How to pay bills online?

Login to RHB Internet Banking. Enrol now if you have not enjoyed
Step 1 the ease of controlling your finances as an RHB Internet Banking
user.
Choose 'BillPay' and select your favourite biller. Add new biller if it is
Step 2 not in your favourite list. You can also make a one-time payment to
selected biller via 'Open Payment' option.
Key-in and confirm transaction details. To add new biller or make a
one-time bill payment, you will be required to key-in a One Time
Step 3 Password and mutual authenticate the security code sent to your
registered mobile number before your transaction is being
processed.
Upon successful transaction, you'll receive a reference no. with a
Step 4 summary of your transaction. Print your online receipt or copy the
transaction reference number for your records.

From other merchant websites, you can also make immediate payments by selecting RHB via direct debit
or FPX service available on the participating merchant websites.

Apart from Internet Banking, you can also pay your utility bills via:

 Any RHB Bank branches

 Credit Card (Smart Pay)
 RHB ATMs

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  What are the different types of issues?
 What is a Offer document?
 What is a Draft Offer document?
 What is a Red Herring Prospectus?
 What is a Abridged Prospectus?
 What is a Letter of offer?
 What is a Abridged Letter of offer?
 What is a Placement Document?
 What does one mean by Lock-in?
 How the word Promoter has been defined?
 Who decides the price of an issue?
 What are Fixed Price offers?
 What does price discovery through book building process mean?
 Who is eligible for reservation and how much (QIBs, NIIs, etc.,)?
 How is the Retail Investor defined as?
 Is it compulsory for me to have a Demat Account?
 How many days is the issue open?
 Can I change/revise my bid?
 Can I know the number of shares that would be allotted to me?
 How long will it take after the issue for the shares to get listed?
 Guide to understand an Offer Document

What are the different types of issues?

Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue
of securities or an offer for sale of its existing securities or both for the first time to the
public.

Further public offering (FPO) is when an already listed company makes either a
fresh issue of securities to the public or an offer for sale to the public, through an offer
document.

Rights Issue (RI) is when a listed company which proposes to issue fresh securities
to its existing shareholders as on a record date. The rights are normally offered in a
particular ratio to the number of securities held prior to the issue.

Private Placement is an issue of shares or of convertible securities by a company to a

select group of persons under Section 81 of the Companies Act, 1956 which is neither a
rights issue nor a public issue.

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What is a Offer document?

Offer document means Prospectus in case of a public issue or offer for sale and Letter
of Offer in case of a rights issue which is filed Registrar of companies (ROC) and Stock
Exchanges. An offer document covers all the relevant information to help an investor to
make his/her investment decision.

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What is a Draft Offer document?

Draft Offer document means the offer document in draft stage. The draft offer
documents are filed with SEBI, atleast 21 days prior to the filing of the Offer
Document with ROC/ SEs. SEBI may specifies changes, if any, in the draft Offer
Document and the issuer or the Lead Merchant banker shall carry out such changes in
the draft offer document before filing the Offer Document with ROC/ SEs.

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What is a Red Herring Prospectus?

Red Herring Prospectus is a prospectus which does not have details of either price
or number of shares being offered or the amount of issue. This means that in case price
is not disclosed, the number of shares and the upper and lower price bands are
disclosed. On the other hand, an issuer can state the issue size and the number of
shares are determined later. An RHP for and FPO can be filed with the RoC without the
price band and the issuer, in such a case will notify the floor price or a price band by
way of an advertisement one day prior to the opening of the issue. In the case of book-
built issues, it is a process of price discovery and the price cannot be determined until
the bidding process is completed. Hence, such details are not shown in the Red Herring
prospectus filed with ROC in terms of the provisions of the Companies Act. Only on
completion of the bidding process, the details of the final price are included in the offer
document. The offer document filed thereafter with ROC is called a prospectus.

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What is a Abridged Prospectus?

Abridged Prospectus means the memorandum as prescribed in Form 2A under sub-
section (3) of section 56 of the Companies Act, 1956. It contains all the salient features
of a prospectus. It accompanies the application form of public issues.

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What is a Letter of offer?

Letter of offer means the offer document prepared by company for its rights issue
and which is filed with the Stock Exchanges. The letter of offer contains all the
disclosures as required in term of SEBI(DIP) guidelines and enable shareholder in
making an informed decision.

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What is a Abridged Letter of offer?
Abridged Letter of offer means the abridged version of the letter of offer. Listed
company is required to send the abridged letter of offer to each and every shareholder
who is eligible for participating in the rights issue along with the application form. A
company is also required to send detailed letter of offer upon request by any
Shareholder.

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What is a Placement Document?

Placement Document means document prepared by Merchant Banker for the
purpose of Qualified Institutions placement and contains all the relevant and material
disclosures to enable QIBs to make an informed decision.

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What does one mean by Lock-in?

Lock-in indicates a freeze on the shares. SEBI (DIP) Guidelines have stipulated lock-in
requirements on shares of promoters mainly to ensure that the promoters or main
persons who are controlling the company, shall continue to hold some minimum
percentage in the company after the public issue. The requirements are detailed in
Chapter IV of DIP guidelines. There is lock-in on the shares held before IPO and also on
shares acquired through preferential allotment route. However there is no lock- in on
shares/securities allotted through QIP route.

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How the word Promoter has been defined?

Promoter has been defined as a person or persons who are in over-all control of the
company, who are instrumental in the formulation of a plan or programme pursuant to
which the securities are offered to the public and those named in the prospectus as
promoters(s).

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Who decides the price of an issue?

The guidelines have been provided that the issuer in consultation with Merchant
Banker shall decide the price. There is no price formula stipulated by SEBI. SEBI does
not play any role in price fixation. The company and merchant banker are however
required to give full disclosures of the parameters which they had considered while
deciding the issue price.

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What are Fixed Price offers?
An issuer company is allowed to freely price the issue. The basis of issue price is
disclosed in the offer document where the issuer discloses in detail about the qualitative
and quantitative factors justifying the issue price.

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What does price discovery through book building process mean?

Book Building means a process undertaken by which a demand for the securities
proposed to be issued by a body corporate is elicited and built up and the price for the
securities is assessed on the basis of the bids obtained for the quantum of securities
offered for subscription by the issuer. This method provides an opportunity to the
market to discover price for securities.

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Who is eligible for reservation and how much (QIBs, NIIs, etc.,)?
In a book built issue allocation to Retail Individual Investors (RIIs), Non Institutional
Investors (NIIs) and Qualified Institutional Buyers (QIBs) is in the ratio of 35:15: 50
respectively.

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How is the Retail Investor defined as?

Retail individual investor means an investor who applies or bids for securities of or
for a value of not more than Rs.1,00,000. Any bid made in excess of this will be
considered in the HNI category.

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Is it compulsory for me to have a Demat Account?

As per the requirement, all the public issues of size in excess of Rs.10 crore, are to
made compulsorily in the demat more. Thus, if an investor chooses to apply for an
issue that is being made in a compulsory demat mode, he has to have a demat
account and has the responsibility to put the correct DP ID and Client ID details in
the bid/application forms.

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How many days is the issue open?

Subscription list for public issues shall be kept open for at least 3 working days and
not more than 10 working days. In case of Book built issues, the minimum and
maximum period for which bidding will be open is 3 – 7 working days extendable by 3
days in case of a revision in the price band. The public issue made by an
infrastructure company, may be kept open for a maximum period of 21 working days.
Rights issues shall be kept open for at least 30 days and not more than 60 days.

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Can I change/revise my bid?

Yes. The investor can change or revise the quantity or price in the bid using the
form for changing/revising the bid that is available along with the application form.
However, the entire process of changing of revising the bids shall be completed within
the date of closure of the issue.

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Can I know the number of shares that would be allotted to me?

In case of fixed price issues, the investor is intimated about the CAN/Refund order
within 30 days of the closure of the issue. In case of book built issues, the basis of
allotment is finalized by the Book Running lead Managers within 2 weeks from the
date of closure of the issue. The registrar then ensures that the demat credit or
refund as applicable is completed within 15 days of the closure of the issue. The listing
on the stock exchanges is done within 7 days from the finalization of the issue.

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How long will it take after the issue for the shares to get listed?
The listing on the stock exchanges is done within 7 days from the finalization of the
issue. Ideally, it would be around 3 weeks after the closure of the book built issue. In
case of fixed price issue, it would be around 37 days after closure of the issue. In
case of fixed it would be around 37 days after closure of the issue.

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Guide to understand an Offer Document

This section basically tries to tell the reader about the structure of presentation of the
content in the Offer Document. This is with a view to help the reader navigate
through the content of an offer document.

a. Cover Page
The Cover Page of the offer document covers full contact details of the issuer
company, lead managers and registrars, the nature, number, price and amount of
instruments offered and issue size, and the particulars regarding listing. Other details
such as Credit Rating, IPO Grading, if opted for, risks in relation to the first issue,
etc are disclosed if applicable.
b. Risk Factors
Here, the issuer’s management gives its view on the Internal and external risks faced
by the company. Here, the company also makes a note on the forward looking
statements. This information is disclosed in the initial pages of the document and it is
also clearly disclosed in the abridged prospectus. It is generally advised that the
investors should go through all the risk factors of the company before making an
investment decision.

c. Introduction
The introduction covers a summary of the industry and business of the issuer company,
the offering details in brief, summary of consolidated financial, operating and other
data. General Information about the company, the merchant bankers and their
responsibilities, the details of brokers/syndicate members to the Issue, credit rating (in
case of debt issue), debenture trustees (in case of debt issue), monitoring agency, book
building process in brief and details of underwriting Agreements are given here.

Important details of capital structure, objects of the offering, funds requirement,

funding plan, schedule of implementation, funds deployed, sources of financing of funds
already deployed, sources of financing for the balance fund requirement, interim use of
funds, basic terms of issue, basis for issue price, tax benefits are covered.

d. About us
This presents a review of on the details of the business of the company, business
strategy, competitive strengths, insurance, industry-regulation (if applicable), history
and corporate structure, main objects, subsidiary details, management and board of
directors, compensation, corporate governance, related party transactions, exchange
rates, currency of presentation dividend policy and management's discussion and
analysis of financial condition and results of operations are given.

e. Financial Statements
Financial statement, changes in accounting policies in the last three years and
differences between the accounting policies and the Indian Accounting Policies (if the
Company has presented its Financial Statements also as per Either US GAAP/IAS are
presented.

f. Legal and other information

Outstanding litigations and material developments, litigations involving the company
and its subsidiaries, promoters and group companies are disclosed. Also material
developments since the last balance sheet date, government approvals/licensing
arrangements, investment approvals (FIPB/RBI etc.), all government and other
approvals, technical approvals, indebtedness, etc. are disclosed.

g. Other regulatory and statutory disclosures

Under this head, the following information is covered: authority for the Issue,
prohibition by SEBI, eligibility of the company to enter the capital market, disclaimer
clause, disclaimer in respect of jurisdiction, distribution of information to investors,
disclaimer clause of the stock exchanges, listing, impersonation, minimum subscription,
letters of allotment or refund orders, consents, expert opinion, changes in the
auditors in the last 3 years, expenses of the issue, fees payable to the lead managers,
fees payable to the issue management team, fees payable to the registrars,
underwriting commission, brokerage and selling commission, previous rights and
public issues, previous issues for cash, issues otherwise than for cash, outstanding
debentures or bonds, outstanding preference shares, commission and brokerage on,
previous issues, capitalization of reserves or profits, option to subscribe in the issue,
purchase of property, revaluation of assets, classes of shares, stock market data for
equity, shares of the company, promise vis-à-vis performance in the past issues and
mechanism for redressal of investor grievances.

h. Offering information
Under this head, the following information is covered: Terms of the Issue, ranking of
equity shares, mode of payment of dividend, face value and issue price, rights of the
equity shareholder, market lot, nomination facility to investor, issue procedure, book
building procedure if applicable, bidform, who can bid, maximum and minimum bid
size, bidding process, bidding bids at different price levels, escrow mechanism, terms of
payment and payment into the escrow collection account, electronic registration of bids,
build up of the book and revision of bids, price discovery and allocation, signing of
underwriting agreement and filing of prospectus with SEBI/ROC, announcement of
statutory advertisement, issuance of confirmation of allocation note("can") and
allotment in the issue, designated date, general instructions, instructions for completing
the bid form, payment instructions, submission of bid form, other instructions, disposal
of application and application moneys, , interest on refund of excess bid amount, basis
of allotment or allocation, method of proportionate allotment, dispatch of refund orders,
communications, undertaking by the company, utilization of issue proceeds, restrictions
on foreign ownership of Indian securities, etc.,

i. Other Information
This covers description of equity shares and terms of the Articles of Association,
material contracts and documents for inspection, declaration, definitions and
abbreviations, etc.,

a. Green-shoe Option
A Green Shoe option means an option of allocating shares in excess of the shares
included in the public issue and operating a post-listing price stabilizing mechanism
for a period not exceeding 30 days in accordance with the provisions of Chapter VIIIA
of DIP Guidelines, which is granted to a company to be exercised through a
Stabilizing Agent. This is an arrangement wherein the issue would be over allotted to
the extent of a maximum of 15% of the issue size. From an investor’s perspective, an
issue with green shoe option provides more probability of getting shares and also that
post listing price may show relatively more stability as compared to market.

b. e-IPO
A company proposing to issue capital to public through the on-line system of the
stock exchange for offer of securities can do so if it complies with the requirements
under Chapter 11A of DIP Guidelines. The appointment of various intermediaries by the
issuer includes a prerequisite that such members/registrars have the required facilities
to accommodate such an online issue process.

c. Safety Net
Any safety net scheme or buy-back arrangements of the shares proposed in any
public issue shall be finalized by an issuer company with the lead merchant banker in
advance and disclosed in the prospectus. Such buy back or safety net arrangements
shall be made available only to all original resident individual allottees limited up to a
maximum of 1000 shares per allottee and the offer is kept open for a period of 6
months from the last date of dispatch of securities. The details regarding Safety Net are
covered under Clause 8.18 of DIP Guidelines.

h. Cut Off Price

In Book building issue, the issuer is required to indicate either the price band or a floor
price in the red herring prospectus. The actual discovered issue price can be any
price in the price band or any price above the floor price. This issue price is called “Cut
off price”. This is decided by the issuer and LM after considering the book and
investors’ appetite for the stock. SEBI (DIP) guidelines permit only retail individual
investors to have an option of applying at cut off price.

j. Basis of Allocation/Basis of Allotment

After the closure of the issue, the bids received are aggregated under different
categories i.e., firm allotment, Qualified Institutional Buyers (QIBs), Non-Institutional
Buyers (NIBs), Retail, etc. The oversubscription ratios are then calculated for each of
the categories as against the shares reserved for each of the categories in the offer
document. Within each of these categories, the bids are then segregated into different
buckets based on the number of shares applied for. The oversubscription ratio is
then applied to the number of shares applied for and the number of shares to be
allotted for applicants in each of the buckets is determined. Then, the number of
successful allottees is determined. This process is followed in case of proportionate
allotment. In case of allotment for QIBs, it is subject to the discretion of the post issue
lead manager.

k. Qualified Institutional Buyer (QIBs)

Qualified Institutional Buyers are those institutional investors who are generally
perceived to possess expertise and the financial muscle to evaluate and invest in the
capital markets. In terms of clause 2.2.2B (v) of DIP Guidelines, a ‘Qualified
Institutional Buyer’ shall mean:

a. public financial institution as defined in section 4A of the Companies Act, 1956

b. scheduled commercial banks
c. mutual funds
d. foreign institutional investor registered with SEBI
e. multilateral and bilateral development financial institutions
f. venture capital funds registered with SEBI
g. foreign Venture capital investors registered with SEBI
h. state Industrial Development Corporation
i. Insurance Companies registered with the Insurance Regulatory and Development
Authority (IRDA)
j. Provident Funds with minimum corpus of Rs. 25 crores
k. Pension Funds with minimum corpus of Rs. 25 crores)

Chapter 5 Market Operations and Trading

5.4 Initial Public Offering (IPO)
 

5.4.1 How can investors know what companies are planning to commence public
offering soon?   
Listing schedules and listing destinations are business decisions of companies. Potential
listing candidates normally seek to increase the market awareness of their listing plans
after they have obtained listing approval from the Stock Exchange. The Stock Exchange
does not make announcement on behalf of companies regarding their listing plans and
schedules.
On 1 January 2008, HKEx launched a pilot scheme requiring new listing applicants, to
post a Web Proof Information Pack (WPIP) on the HKEx website or the Growth Enterprise
Market (GEM) website (whichever is applicable) before their IPO. The WPIP should be in
the nature of a near-final draft listing document. The pilot scheme is intended to help level
the playing field for institutional and retail investors in the receipt of information about an
applicant. HKEx is reviewing the pilot scheme and the result will be announced.
Investors may go to Issuer-related Information section of the HKExnews website or the
Web Proof Information Packs section of the GEM website for information.
It should be noted that the WPIP is for reference only. It constitutes neither a prospectus
document nor a final draft of a prospectus. Investors should not make investment
decisions based on its information. Instead, they should read the prospectus
subsequently issued by the candidate, which together with listing documents and
announcements are posted on the HKExnews website and the issuer’s own website.
 
5.4.2 How can investors obtain prospectuses and subscription forms for IPO? 
Distribution points of prospectuses and subscription forms for IPO are set out in the
prospectuses of issuers. Investors can search for the prospectuses and announcements
 from the Listed Company Information section on the HKExnews website. They may also
check with the sponsor or underwriter or receiving banks for details about the distribution
of prospectuses and subscription forms as well as application procedures.
Investors with an Investor Account at CCASS can apply for new issues electronically
through HKSCC via the CCASS Phone Operations Hotline or CCASS Internet System or
by submitting 'EIPO Application Instruction Input Request Form' to the Customer Service
Centre before the application end time and date.
Brokers and custodians can also apply for new shares for clients via the EIPO service
provided by CCASS. That will save investors the trouble of having to complete an IPO
application form.
 
5.4.3 Which forms should investors use to subscribe for new shares? White or Yellow
Forms?  What is the difference?  
Investors can use either the White or Yellow Form to subscribe for new shares but not
both forms.  Multiple or suspected multiple applications are liable to be rejected.
Investors who want physical shares to be issued in their names should use the White
Form while those who want shares to be deposited directly into CCASS and registered in
the name of HKSCC Nominees Limited should use the Yellow Form.
One of the main differences between White and Yellow Forms is that White Form
subscribers usually have to wait for the mailing of physical share certificates and can
normally trade the stock only after receiving the share certificates and having them
deposited with brokers.  Investors may not be able to catch the first trading day as they
may not have received the physical shares certificates before trading of the new shares
commences.  However, as the allotted shares of Yellow Form subscribers have already
been deposited into CCASS, they can trade the stocks through their brokers on the first
trading day of the new issues.
 
5.4.4 How can investors apply for new shares electronically?  
Investors can subscribe for new shares electronically through one of the following
channels:

1. The designated website of the White Form eIPO service provider appointed by the
newly listed company (a newly listed company may appoint a designated service
provider to provide White Form eIPO services);

2. If the listing company makes use of the Electronic Initial Public Offering (EIPO)
service under CCASS, Investor Participants in CCASS can apply for new shares
by inputting EIPO application instructions through the CCASS Phone Operations
Hotline (2979 7888) or the CCASS Internet System (https://ip.ccass.com). Please
refer to the “Investment Service Centre” of the HKEx website for the details about
the Investor Account services.

3. If the listing company makes use of the EIPO service under CCASS, investors
who have not opened Investor Accounts in CCASS can contact their brokers or
other intermediaries to apply for new shares electronically.

If an investor applies via the first channel, refund due to partially or fully unsuccessful
application or due to price adjustment are effected through bank transfers or by cheque.
Please contact the relevant White Form eIPO service provider for information.
 If an Investor Participant applies via the second channel, refund will be credited into its
accounts.

If an investor applies via the third channel, refund will be credited into the account of the
broker or other intermediary who input the application for him/her.
 
5.4.5 What are multiple applications?  
In Hong Kong public offerings, an application is liable to be rejected if the investor has
made more than one application (even for joint name application).
 
5.4.6 How can investors know IPO allotment results?  
Investors can search for IPO allotment results from Listed Company Information under the
HKExnews website. They can also ask the relevant share registrar about the results.
Information on how to contact share registrars can be accessed on “Company/Securities
Profile” under “Investment Service Centre” of the HKEx website. Newly listed companies
may also announce allotment results on their own websites. Arrangements for the
announcement of allotment results are set out in prospectuses.
 
5.4.7 What is the allotment basis?   
The allotment basis depends on the number of valid applications for subscription for the
IPO shares. Normally, the share registrar appointed by the issuing company first screens
out multiple, incomplete or wrongly filled applications. Then, shares are allotted according
to the basis of allocation as determined by the sponsor and the newly listed company.  In
the event of over-subscription, the newly listed company must increase the number of
shares in the public subscription tranche by transferring shares from the placing tranche
(if there is a placing tranche) by virtue of the claw back mechanism.  Investors should
refer to the relevant section in the prospectus.
 
5.4.8 What should investors do if the subscribed for a new share issue and received
neither share certificates nor a refund cheque after trading in the company's shares
had started?  
In applying for shares, investors should note how and when the results of applications will
be announced. These are stated in the prospectus and application forms. If investors fail
to receive any notice after the stated time, they should check with the sponsor or the
share registrar of the new issue.
 
http://www.hkex.com.hk/eng/global/faq/initial%20public%20offering.htm

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Frequently Asked Questions

 What is eIPO service?

 What are the benefits of eIPO?
 Pre-registration is required for eIPO services?
 How to make application payment?
 Is eIPO service available 24 hours a day?
 What are the steps of using eIPO services?
  Can I complete the application form of eIPO Services of the Bank in Chinese or English?
 Can I submit more than one application for the same IPO?
 Which applications form IPO Services is like?
 How do I know if my application instruction has been submitted successfully?
 Can I amend or cancel my eIPO application?
 How do I know whether the securities are allotted to me?
 How will I be refunded?

What is eIPO service?

eIPO stands for Initial Public Offering that is the first time a company issues shares or bonds to public
investor. The newly issued securities or bonds may be listed on stock exchange. eIPO service means a
service offered by the Bank of subscription for new issued shares through internet.

What are the benefits of eIPO?

Time Saving

No more queuing up in long lines to obtain or submit application forms or write checks for IPO
subscriptions.

Reliable

Deposit your allotted shares directly into your Securities Trading Account with us to avoid any delay or
loss of certificates in the mail.

Fast

Instant trading of the allotted shares on the first trading day.

Pre-registration is required for eIPO services?

Customers who use our eIPO services should maintain securities account and online banking with our
Bank.

How to make application payment?

Payment of application money will be made by debiting to your settlement account through Auto-Pay
Method on or after payment deadline. However, please ensure you have sufficient funds in your
settlement account on or before the payment deadline. Otherwise, your application will not be processed. .

Is eIPO service available 24 hours a day?

Yes. You may submit application online anytime between the eIPO Application Starting Date and
Application Deadline that can be found at the eIPO Center of our Bank.

What are the steps of using eIPO services?

Step 1

Read carefully any information about the new issued shares at the eIPO Center of our Bank.

Step 2

Before making an application, read thoroughly and agree with all the "General Terms & Conditions in
Relation to eIPO Application Services".

Step 3

Reading carefully the Prospectus relating to the IPO company and all other relevant Terms and
Conditions.

Step 4

If you agree with all the terms and conditions, you can complete the online application form.

Once you confirmed the application, you cannot amend or cancel your application. Please check the
information carefully and ensure that the information provided by you is correct.

After the Bank has received an online instruction, a confirmation of receipt of instruction with the
reference number assigned for such instruction will be posted. The Applicant is advised to print and keep
a hard copy of such confirmation for record.

Payment of application money will be made by debiting to your settlement account through Auto-Pay
Method.

Step 5

Your allotted securities will be deposited into your designated securities account on the first listing (issue)
day, which allow you to take actions instantly according to market conditions. Refund of Application
Money will be credited back to your settlement account within the days specified in the prospectus.

About Application

Can I complete the application form of eIPO Services of the Bank in Chinese or English?

Whether the Applicant uses the Chinese or English version of the online application form, you must
complete the form in English only.
Can I submit more than one application for the same IPO?

No. The applicant should submit only one application; The Bank shall not process any instruction by
reason of multiple applications.

Which applications form IPO Services is like?

IPO Services form is like yellow application form. The Bank in the name of your nominee submits
application for you. All the payment of application money will be debited to the settlement account through
Auto-Pay Method. Your allotted securities will be deposited into your designated securities account. And
refund of Application Money (If any) will be credited back to your settlement account.

How do I know if my application instruction has been submitted successfully?

After the Bank has received an online instruction, a confirmation of receipt of instruction with the
reference number assigned for such instruction will be posted on relevant webpage. The Applicant is
advised to print and keep a hard copy of such confirmation for record. Moreover, please ensure you have
sufficient fund in your settlement account on or before the payment deadline. Otherwise, your application
will not be processed.

Can I amend or cancel my eIPO application?

No. Once you confirmed the application, you cannot amend or cancel your application.

How do I know whether the securities are allotted to me?

Your allotted securities will be deposited into your designated securities account on the first listing (issue)
day. Allocation, and arrangements for announcing the results of the allocation, of securities shall be the
sole responsibility of the Offeror and should be specified in the prospectus or the relevant offering
documents issued in respect of the relevant Public Offer.

How will I be refunded?

If you receive allotted shares with partially successful or unsuccessful, the application of money will be
credited back to your settlement account within the days specified in the respective prospectus.

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Guidelines for Online IPO Application

1. Who is eligible to make an e-IPO application through the Taifook Securities Company Limited ("TFSCL")'s
Website?

Eligible applicant must:

 Hold an Online Trading Account with TFSCL ("Trading Account")

 Possess HKID Card/HK BR Certificate and HK Address

2. What is the difference between using White and Yellow Application Form?

Applicants for IPO shares should use the Yellow application form if you want the Public Offer Shares to be allocated
to you and issued in the name of HKSCC Nominees Limited and deposited directly into CCASS for credit to your
investor participant stock account or your Taifook Securities account of your designated CCASS participant. You may
contact your own broker or call our Customer Service department at (852)3583 3388 for details.

Applicants should use the white form if you want to receive physical certificate issued in your name.

3. Will I receive any confirmation after making an IPO application online?

TFSCL will not send issue any confirmation notification after we received your application. However you can check
your application status on Web Securities system.

4. How can I pay the e-IPO application money before making an online subscription?

You should deposit full amount of application money (including all relevant brokerage and levies as referred in the
relevant Prospectus plus handling fee of $100) into your Trading Account before submission of your IPO application.
You may deposit the application money to TFSCL's account in Hong Kong Bank, Hang Seng Bank, Standard
Chartered Bank or Bank of China. You can also use e-banking service to transfer the application money if you have
e-banking account in HSBC, BOC or Bank of East Asia. (Please click here to refer to the e-payment section)

5. When will we hold up client's money after making subscriptions?

We will hold up client's money once the client places an application.

6. How do I know whether my e-IPO application is successful or not?

Allotment results will be published on the newspapers (only for white form applicants) on the date as announced by
the issuer in the prospectus.

Yellow form applicants should check their account status for share allotments results.

Taifook’s client can enquiry via our IPO Allotment Result Hotline at (852) 3588-7688 at fast & convenient way by
inputting your personal information & stock code.

7. How can I get a refund for a wholly or partially unsuccessful e-IPO application or any surplus application
money?

The share registrar of the issuer will refund any application money due to you by a cheque made out to you, or if you
are a joint applicant, to the first-named applicant as supplied by you in the IPO Applicant input screen (for white form
applicants only). The refund cheque will be sent by ordinary post to the address as supplied by you in the IPO
Application as announced by the issuer.
For yellow form applicants, the share registrar of the issuer will refund any application money due to you by crediting
into your Securities Account at Taifook.

8. Will I receive physical share certificates if my application is successful? How do I receive the allotted
shares if my application is successful or partially successful?

If your application for shares is successful in whole or in part, the share registrar of the issuer will issue share
certificate(s) in your name and send it/them by ordinary post to the address as supplied by you in the IPO Application
input screen on the date of dispatch as announced by the issuer. (for white form applicants only).

For yellow form applicants, the share registrar of the issuer will issue share certificate(s) into your Securities Account
at Taifook.

9. Is the Internet IPO service available 24 hours a day, 7 days a week?

Yes, you can access the Internet IPO services 24 hours a day, 7 days a week.

The above information is not intended to be a complete description of the procedures and terms and conditions for
IPO application.

If you intend to make an IPO application online, you should ensure that you have read the terms and conditions and
application procedures set out in our website in relation to the IPO Application and the relevant prospectus prior to
making the IPO Application.

Should you have any further questions regarding IPO application, please feel free to contact our Customer Service
Hotline on 3583 3388 or visit our website at www.taifook.com.