moomoo SG Help Center-FAQ about IPO subscription
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FAQ about IPO subscription

1. FAQ about Standard Subscriptions 

1.1 Which part of my funds can I use for standard subscription?

You may use the available funds in your account to subscribe for IPOs, including the available cash and the funds borrowed via Moomoo Singapore's financing services.

1.2 Why are my available funds less than the maximum buying power of my account?

The withdrawable amount shown on your account page is your ''maximum balance'' whereas the amount available for IPO subscription is ''withdrawable cash'', which may be smaller than ''maximum balance''. Please refer to the available cash amount shown on the IPO subscription page. As long as you subscribe within this amount limit, no interest will accrue.

1.3 When will my money be deducted for standard subscription?

After receiving your subscription, the system will freeze the required money immediately and deduct it based on subscription deadline.

1.4 Can I cancel or edit my standard subscription?

You may cancel or edit your IPO subscription before the required money is deducted. Please pay attention to any notification on the deduction time.

1.5 How do I pay back funds borrowed via Moomoo Singapore's financing services after making new deposits?

Your new deposits will automatically cover the arrears (if any) in your account.

 

2. FAQ about Bank-Financed IPO Subscriptions

2.1 Do I have to maintain cash in my account for bank-financed subscription?

No. You may use your stock positions as collateral for bank-financed subscription.

Note: Currently, the buying power of an Universal Account cannot be combined with that of other margin accounts.

2.2 When will the required money be deducted for bank-financed subscription?

After receiving your subscription, the system will freeze the required money immediately and deduct it based on subscription deadline.

2.3 How is interest calculated? Does the timing of my application matter?

Interest accrues starting from the end of subscription deadline. Please refer to the app for the specific amount of interest. The timing of your application will not make any difference.

2.4 How do I pay back funds borrowed via bank financing after making new deposits?

You may not pay back bank-financed funds early. Interest will be deducted from your account on the announcement date of allotment results.

2.5 What will happen to the deducted funds after the announcement of allotment results?

If you receive no allotment after the announcement of allotment results, the system will return the deducted funds (excluding subscription fees) to your account. If you are allotted shares, the system will add them into your position and deduct the corresponding money.

2.6 What if a margin call occurs after the announcement of allotment results?

If your account runs too low on funds after the announcement of allotment results, a margin call will be triggered. Please deposit sufficient money into your account before the listing date. Otherwise, Moomoo Singapore retains the right to carry out forced liquidation without prior notice.

2.7 When will the interest be deducted?

Interest on bank financing will be deducted on the announcement date of allotment results.

2.8 Do I have to maximize my leverage for bank-financed subscription?

No. You may adjust the ratio of you own funds to the money borrowed via bank financing according to your personal needs.

2.9 Can I cancel or edit my subscription?

You may cancel or edit your subscription before the deduction time. Please refer to the notifications for the exact deduction time.

Note: Please pay attention to the subscription deadline in case you don’t have enough time to re-subscribe after cancelling your subscription.

 

3. Other Questions

3.1 Can I participate in both standard subscription and bank-financed subscription at a time?

No. You may choose only one.

3.2 When will my new deposits become eligible for IPO subscription?

You may use your new deposits to subscribe for IPOs immediately after paying off your existing arrears (if any).

3.3 When will the proceeds from selling my stocks become eligible for IPO subscription?

If you sell your stocks, you can use the proceeds to subscribe for IPOs the same day as long as subscription has not ended on day T+2 when these proceeds will be settled. If subscription will have ended on day T+2, you may use only your current available funds for subscription.

3.4 What are the rules for IPO subscription? Will I get more allotment if I subscribe for more?

The allotment rules are set by the HKEX. Typically, the more shares you subscribe for, the more likely you will get allotted.

3.5 What are the GST collection rules for IPO subscription?

According to the government regulations, Singapore tax residents are subject to goods and services tax (GST). GST for Hong Kong IPO subscription includes two parts:

1. GST on Moomoo Singapore handling fees: 50 * 9% in HKD for standard subscription; 100 * 9% in HKD for bank-financed subscription.

2. GST on brokerage and transaction fees: number of allotted shares*issue price*1.0085%*9% in HKD.

Note: The required money, calculated as subscription amount*issue price*1.0085%*9% in HKD, will be frozen, and deducted from your account on the subscription deadline. After the allotment results are announced, the allotment amount will be charged, and any excess amount will be refunded to your account.