Term

Hong Kong IPO terms

Common terms used during Hong Kong IPO subscription, allocation, stabilization, grey market and listing stages.

One-lot win rate

The one-lot win rate is the probability that an investor applying for one board lot receives at least one lot.

The grey market is pre-listing trading of new shares through selected broker platforms before the official exchange listing.

Margin subscription means applying for IPO shares with financing provided by a broker.

The clawback mechanism reallocates part of the international placing tranche to the public offer when public demand is strong.

Public offer oversubscription measures how many times public investor demand exceeds the shares available in the public offer.

Pool A and Pool B split public offer applications by application size.

Entry fee is the amount reserved to apply for one board lot of a new listing.

The final offer price is the actual per-share issuance price after IPO pricing is completed.

Top hammer refers to applying at the maximum public offer application tier.

Guaranteed allocation usually means an application tier receives at least one lot in the final allotment pattern.

Allotment ratio is the share of applied shares or lots that are actually allocated.

Greenshoe refers to an over-allotment and post-listing stabilization arrangement in an IPO.

Cornerstone investors commit to subscribe before listing and usually accept a lock-up period.

First-day return usually measures the first listing day's close relative to the final offer price.

Refund date is when unallocated or excess application money is returned.