Singapore IPOs: Lessons on IPOs
IPOing 101 - How to apply for IPO shares?
This post only covers applying for the "public tranche" of the IPO shares.
Step 1: Open a CDP account with SGX.
Without a CDP account, you will not be able to apply for the IPO shares as you need to key in your CDP account number the first time you apply for the shares. For your convenience, you may want to open a CDP account with any brokerage firms.
Step 2: Ensure you have an account with our local banks here and the ATM card.
listing, it has to choose an underwriter or placement agent. Which placement agent do you always see on the IPO prospectus? It is none other than DBS Bank. You may wonder why DBS bank is always the "first port of call'? The reason is simple. DBS (together with POSB) owns the widest network of ATM machines in Singapore.
If you ask around, almost everyone here has either a DBS or POSB account or both! This is why if you have a DBS or POSB account, you can probably apply for all the IPOs via their ATMs. This will include applying via their internet banking platform as well. (I will apply for the IPOs via DBS's internet banking if they are available). If there are sufficient time to launch the IPO, the underwriters may then expand this offer to other banking networks such as UOB or OCBC.
Step 3: Apply for the shares at the IPO tranche via ATM or Internet Banking before the closing date and time.
Usually before 12pm on a chosen date. The IPO fee is currently $2 per transaction and you will need to have sufficient cash to debit for all the shares you applied.
Step 4: Check the results to see if your application is successful.
If you are successful, the shares will be credited to your CDP account. You may start checking for the results from 6pm onwards the next evening after the IPO closed.
Step 5: You may then sell the allocated IPO shares through the "normal cash accounts" of any brokerage firms
that you have linked the CDP account with either on-line or with a broker.
http://deluxeforums.hardwarezone.co...account-singapore-updated-2012-a-3628498.html
You will not be able to sell the shares through Saxo, IG or Standard Chartered as these accounts are not linked to CDP.
Singapore IPOs: How to increase your probability of get IPO shares from the public tranche
How to increase your probability of get IPO shares from the public tranche
Let's do an interesting topic today on how to increase your chances of getting some shares from the IPO public tranche.
It is always relatively easier to get IPO shares when sentiments are weak and very diffcult to get IPO shares when sentiments are hot and that is what is happening right now! The proportion of shares allocated to the public tranche are so pathetic that it is almost always certain that you will waste your $2 application fees. Dont you get frustrated when you know you have wasted that $2 again at the ATM applying for IPO shares? So what are some of the tips to increase your chances of getting the IPO from the public tranche? (we will talk about how to lay your hands on the placement tranche another day).
(The above is the allocation table for Wanxiang IPO)
According to the listing manual chapter 2, the Company going for listing must have at least 1,000 public shareholders for a Mainboard listing and at least 500 public shareholders for a SESDAQ listing. The listing company will try to meet the minumum number of sharesholders from its placement tranche, as such the public tranche is more for 'show' as well as to truly ensure that the shareholders are truly independent and 'not-related' to the Company. These are the following things which you can do to increase your chances for the public tranche:
No.1 - Apply for at least 50,000 shares but the optimal will be 100,000 shares.
From the IPO allocation table above, you can see that more than 70% of the public tranche are allocated to this group of IPO applicants and that this group has the highest probability of getting the shares versus the rest. In addition, you will usually get a 'decent' allocation of about 3k-8k shares, which makes it more 'worthwhile' than those who get 1k or 2k shares.
No.2 - Use as many different CDP accounts as you can to apply for the shares.
Another way will be to gain access to the CDP/ATM accounts of family and relatives who don't buy the IPO shares and use their accounts to apply for the shares. By using 4 to 5 accounts to apply for the IPO shares, you definitely stand a better chance of getting the IPO allotment. Do note that it is an offence to make multiple applications for IPO shares using the same CDP account, so dont ever do it.
No.3 - Borrow $ for a few days to increase your chances.
If the IPO is really hot, you may consider getting interest free loans from family or relatives to increase your chances of getting the IPO shares just for a few days. Many years ago, our local banks provides "IPO Financing" to help increase your chances but this scheme has since been scrapped. You will have to use your 'overdraft' facilities if you do not have access to 'interest-free' loans.
No.4 - Apply for the shares on the closing date and as close to the closing time as possible (not scientifically proven).
There is a hearsay that if you apply on the IPO closing day and as close to the IPO closing time (usually 12pm), your chances of getting the shares will be higher. This is however, not scientifically proven but it may hold some ground on the basis that if you apply the shares on the last day, you only 'lose' interest income for 2 days before the money is returned to you. In addition, you never know if the IPO allocation programme logic is indeed flawed and favour those who applied on the closing day. Why not you try this method and let me know if your chances has improved but the risk is that you might forget to apply for the IPO or miss the 12pm deadline.
No.5 - Never give up.
Sometimes we give up after a few times but you never know when your lucky stars will shine again. My motto is 'never give up' and you might just be rewarded for your persistance and perserverance.
Good Luck and you may just get it on your next try.
Singapore IPOs: How to lay your hands on the placement shares?
How to lay your hands on the placement shares?
Today I will share with you some tips on how to increase your chances of getting your hands on the placement tranche. Before we discuss the various 'tips', we must first understand the view point of the placement agent and underwriter.
Imagine you are acting as a placement agent for an IPO and you want to ensure that your IPO is a success, what are the criteria you would set for the investors you place those shares to? Would you want to place your shares to investors who will sell on the first day of trading or would you prefer to place out the shares to reputable investors who will boost the profile and awareness of your IPO? Well, here are some tips that may just help you get some placement shares that you dream of.
Tip 1: Change your name to Mr. Temasek
If your name is Temasek, placement agents will be begging you to take their IPO shares so that they can put your name down in the IPO announcement (or 'IPO Tombstone"). Temasek is known to be a longer term investor and by having such an anchor investor in your IPO, it will sure attract the attention of other investors to support your IPO. Similarly, if you belong to the "Elite Investors Group", placement agents will be offering their IPO shares to you on a platter. Elite Investors Group are reputable investors who will raise the profile and value of your IPOs and may even help placement agent to 'support the price' post-IPO. Example of investors who belong in this Elite Group will be investors like Tommie Goh and Gay Chee Cheong (2G Capital), David Loh and Han Seng Juan (Centurion Investment Management), Koh Boon Hwee, Ooi Hong Leong (Chip Lian), Sam Goi (Popian King) and professional funds such as Dubai Investment, Morgan Stanley, BNP, etc. Usually these investors will take up about a huge chuck of the IPO placement shares and so-called "anchor the IPO". The placement agent will be quite confident that the IPO will succeed because of these anchor investors. If you belong to these Elite Group or if your name is Temasek then you dont have to read further.... hahaha
Tip 2: Concentrate your trades in a securities firm that do IPOs.
If you dont belong to the Elite Investors Group, then you must try to get yourself in to the remaining 1,000 public sharesholders which they must place the share to in order to fulfil the listing requirement. These investors are usually allocated between 3 to 20 lots each to allow the placement agent to meet the minimum shareholders requirement. My tip to you will be to concentrate your trades in one securities firm. Dont open a trading account with Lim & Tan, go and open a trading account with DBS, Kim Eng, UOBKH, CIMB, Westcomb and even Philips Securities! Concentrate all your trades at one of these brokerage houses so that when you demand placement shares from your broker, you can 'talk louder' and your demand can 'carry more weight' if it is backed by 'paid commissions'.
Tip 3: Get a dealer, not a remisier.
Why do i say that? Dealers usually work for the brokerage firms and they are usually not allowed to handle their personal/relatives' trading accounts. In this regard, there will be 'less hanky panky' as they will have to justify to their superiors on why they allocate the placement shares to you. They also get more IPO placement shares over their remisiers counterpart because the Company will earn a bigger chuck of the commision from dealers. On the other hand, remisiers have more freedom in whom they allocate the placement shares to and sometimes some remisiers may just allocate them to accounts which they have vested interest. It is also true that remisiers will have less access to IPO placement shares versus the dealers.
Tip 4: Tell your broker you are interested in placement shares and tell them way in advance.
By the time you see the IPO for public tranche is launched, it usually means that the placement tranche has been fully subscribed as well. As such, you will have to be more pro-active to check out the MAS Opera website to find out which offers are pending approval and indicate your interest to your broker if their brokerage house is the underwriter or placement agent. Always tell your broker that you are interested in IPO placement shares so that they will not 'forget you'. If you dont ask, how will your broker know? There is a hokkien saying "脸皮厚厚,吃到老老" just ask your broker for the shares. But again, this will tie back to tip 2 again. If you have generated a lot of commissions for your broker, then your chances of getting the placement shares will be higher.