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Thursday, October 29, 2020 – 5:50 am
UPDATED Thu, Oct 29, 2020 – 10:35 am
Singapore
ANT Group’s successful initial public offering (IPO) has been grabbing the headlines, but retail investors in Singapore eager for a piece of the world’s largest IPO will have to wait and buy on the open market after trading begins. Accredited investors, on the other hand, can subscribe to the public part of their shares through online brokerage platforms.
The Chinese fintech titan, part of the Alibaba group, will raise about $ 34.5 billion when its shares go public in Hong Kong and Shanghai.
Individuals who wish to qualify as accredited investors must have:
- Income in the previous 12 months of not less than S $ 300,000 (or its equivalent in foreign currency);
- Net personal assets greater than S $ 2 million (or its foreign currency equivalent) in value, of which the net value of the investor’s principal place of residence can only contribute up to S $ 1 million
- Net financial assets greater than S $ 1 million (or its equivalent in foreign currency) in value.
Jean Paul Wong, general manager of FSMOne, the business-to-consumer division of iFast Corp in Singapore, said FSMOne.com offers Ant’s initial public offering on the Hong Kong Stock Exchange (HKEX) to accredited investors, and has been offering HKEX initial public offerings online since early 2018..
“The process to open an FSMOne account, make a (accredited investor) statement and subscribe to HKEX IPOs is completely online and therefore hassle-free and convenient for investors,” he added.
According to the Ant Group prospectus, an investor can request at least one lot, consisting of 50 shares. Including the brokerage commission and other fees, the minimum subscription amount will be HK $ 4,040.31 (S $ 712).
Eng Thiam Choon, CEO of Tiger Brokers (Singapore), said the brokerage has received “a lot of interest” from retail investors for the Ant Group IPO, adding that Singaporean investors tend to “have a great interest in investing. in foreign stocks of other exchanges as part of a diversification strategy. “
People who don’t qualify as accredited investors will have to wait. After listing, those with accounts with certain brokerages, including DBS Vickers and Maybank Kim Eng, can buy on the open market.
But with its IPO plans underway, the wait might not be long.
However, Eng noted that since retail investors must have a minimum investment amount of S $ 200,000 before they are considered eligible for such an investment, “you have to be prudent before taking advantage of an opportunity like this” and “do the research needed to keep abreast of market updates. ” (see amendment note)
Amendment note: An earlier version of this article quoted Mr. Eng as saying that accredited investors must have at least S $ 200,000. In fact, it is the retail investors who must have this minimum investible amount.
READ MORE: Jack Ma’s record-breaking pessimistic guide to Ant IPO
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