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Explainer | How retail investors can increase their chances of getting a piece of Ant Group’s blockbuster IPO in Hong Kong
- With just 2.5 per cent of Hong Kong-leg shares allocated to retail investors, a surge in applications has already crashed an online broker website
- Investors could keep their orders small and get a refund of related costs if unsuccessful, or borrow for a higher chance of allotment at a cost
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It’s the world’s biggest initial public offering (IPO), and retail investors are itching to get a slice of the action. But what is the best way to win a share of the Hong Kong-leg of Ant Group’s blockbuster US$34.5 billion offering this week?
Tips from the brokers are divided: investors should either adhere to the Chinese fintech giant’s mantra that “small is beautiful” and keep their order to the minimum, or gear up for a much bigger bet.
Here is an explainer on how a local retail investor can also get a chance to invest in the world’s largest IPO ever.
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How many shares of Ant’s IPOs are being offered to retail investors in Hong Kong, and how can they buy them?
Ant is offering 1.67 billion shares in Hong Kong. Only 2.5 per cent of them, or 41.77 million shares, are earmarked for retail investors. The rest is for global international investors. Investors can apply for the IPO through local banks such as HSBC, Bank of China (Hong Kong), Hang Seng Bank, via one of the 600-plus local stockbrokers, or by visiting the website of www.eIPO.com.hk.
How much does one need to pay for the Ant IPO?
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