What is International placing?

International placing is a way of issuing and listing new shares on Hong Kong Stock Exchange. International placing is not issuing shares in the open market, but towards specific investors. International placing has the following features:

  • Investors in international placing are usually institutional investors and high-net-worth individual investors. Generally speaking, such investors need to meet the eligibility requirements relevant securities laws and regulations of the country/region where they reside (such as the professional investor standards in Hong Kong, etc.).

  • Starting time:Generally, the starting time of international placing is earlier than that of public offering.

  • Allocation Mechanism: Generally speaking, investors who are willing to hold shares for a long time are likely to be allotted more shares in international offering.

  • Allocation Amount: Generally speaking, where an IPO includes both a international placing and a public subscription tranche, the international placing tranche accounts for 90% of new shares, and public offering tranche accounts for the rest 10%. The final allocation may be adjusted according to specific subscription situations. If the amount of public offering is oversubscribed to a certain degree, the minimum allocation of shares to the public subscription tranche will be increased. For example, if the total demand for shares in the subscription tranche is 100 times or more of the initial allocation, the minimum allocation of shares to the public subscription tranche will be increased to 50%, then the allocation of shares to international placing tranche will be decreased accordingly. For more information about the clawback mechanism, please refer to PN6 Initial Public Offer of Securities.

What are the eligibility requirements for clients to participate in international placing?

In general, investors need to be certified by a professional investment certificate or meet the other eligibility requirements in the investor's jurisdiction of residence before participating in an International Placing. Please note that the eligibility requirements for participating in International Placing vary in different jurisdictions; For specific requirements, please consult Tiger's customer service: (852) 2760 2588

In addition, if investors want to participate in International Placing, investors need to meet certain funds requirements; Different projects have different funds requirements for investors. For specific requirements, please refer to subscription page for details.

Does Tiger International provide International Placing subscription? Is it available for all Hong Kong new shares offering?

Tiger International provides International Placing subscription; To know whether it is available for a specific IPO, please refer to the subscription details page of the IPO: IPO page - Hong Kong Stocks - Subscribed items. If there is an "International Placing" TAB, it indicates that International Placing is available for this public offering.

When does the International Placing start? When does Tiger's International Placing subscription start?

International Placing usually starts earlier than the time of Public Offering.

Tiger's International Placing subscription starting time may be later/earlier than Tiger's Public Offering subscription starting time.

What is International Placing subscription closing time? When is the subscription closing time for Tiger's International Placing?

The closing time of subscription for International Placing is the same as the time of Public Offering in the market.

Can I participate in both Public Offering and International Placing of the same IPO?

According to HKEX rules, for the same IPO, one investor can only choose one of [Public Offering] or [International Placing] to participate.

Is the allotment rate 100% when I participate in Tiger's International Placing?

The number and distribution of shares are determined independently by the issuer and/or the underwriters, and the allotment rate may be 0% or 100%, depending on the actual allocation.

The order has been submitted and confirmed, will I definitely be allotted?

The submission of intent of subscription does not mean the client will be allotted any shares for sure; please refer to the final allocation result.

If the allocation is made to you, it indicates that your intention order is accepted. The actual purchase amount and number of shares shall be subject to the final allocation result and the final issuing price.

When I participate in International Placing, will certain amounts of my funds be frozen?

There are two methods to participate in International Placing through Tiger International: Prime Subscription/Cash Subscription;

  1. Prime Subscription is only available to particular investors. For details, please contact your broker. Prime Subscription does not require funds to be frozen; however, the funds to purchase the allocated amount of shares and related fees shall be deposited no later than the date of allocation.

  2. Cash Subscription needs funds to be frozen during subscription period. The frozen part includes: Subscription amount, channel fee, transaction levy, etc.; The portion of funds in excess of the necessary funds to purchase the allocated amount of shares will be unfrozen on the allocation date。

What are the fees to be charged for participating in International Placing?

  • Fee rules: Charged when you alloted the lot(s), otherwise you will not be charged.

  • Fee details: transaction levy, transaction fee, economic fee, placing handling fee.

  • Transaction levy, broker fee, broker commission and other fees shall be equal to the allotment amount *1.0085%

  • Placing Handling fee: The placing Handling fee is charged at a percentage of the allocated amount,; different project's application channel fee is different.

To know the specific percentage to be charged, please consult with the business manager.

This channel fee will be stipulated in the document signed by you.

When can the results of the international placing be known?

  1. The results of the draw will be announced no later than 11:00 PM (L-1) on the day before the listing date and will be notified to you via SMS, push notifications, and other ways.

When can the allotted shares from the international placing be bought or sold?

In international placing, the announcement of the draw results depends on the information released by the Hong Kong Stock Exchange. If the settlement and allocation are completed before the start of the dark trading session, you can engage in buying and selling transactions during the grey market trading session. However, if the settlement and allocation process is delayed and completed after the dark trading session, the transactions will be postponed until the listing date.

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