I received enough emails from 'new comers' asking how to apply for IPO shares and how to sell them that it may be timely to write a post on this. For seasoned IPO old birds, please bear with this even though it creates new 'competition' for the limited public shares. hahaha. 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.
Whenever a company wants to go for 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. (You can learn how to read a balloting table here)
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. Some of local brokers are listed below:
- DBS Vickers Securities
- OCBC Securities
- UOB Kay Hian
- CIMB
- Maybank Kim Eng
- Lim and Tan
- Phillips Securities
You will not be able to sell the shares through Saxo, IG or Standard Chartered as these accounts are not linked to CDP.
Two very old articles which may interest you.
Happy IPOing.
Comments
It is very good for newbie like me.
Do you have idea about where to get the prospect of upcoming IPO?
Samudra energy IPO already can start apply?
Thanks a lot and again :)
For those unsuccessful applications, the monies will be debited back to the bank account, e.g POSB account right?
May I know roughly how long will it takes to complete the debit process?
A bit tight on cash flow for IPO. haha
However, the CDP link in step 1 does not seem to be valid... Do you have another link?
http://www.sgx.com/wps/portal/sgxweb/home/depository/retail/app
After the closed of the ipo and I've allocated some shares. How long will it take for shares to credit or updated in my cdp account?
Is there any restriction on when you can sell your IPO shares from public tranche?
Thank you!
I have a CDP acct linked to my DBS acct. I dont have any broker or trading account, does that mean I cannot sell my IPO shares?
I have recently purchased my first IPO using the DBS ATM and I have been successfully allocated the amount. I called SGX and they say my CDP account has reflected the amount as well. I bought the IPO from a DBS ATM cause my DBS VICKERS account wasn't ready yet. However, after applying for the CDP linkage with DBS VICKERS, I still do not see any IPO amount in my DBS Vickers account. Am I still able to sell my IPO using the DBS VICKERS account (in time to come)?
How long does it take for the shares to be reflected in my CDP account? I have recently got successful allocation. But it's two days since the release of result (PRIME US REIT) and I still don't see it in my account yet. My guess is I have got to wait till the first day of trading?
Thanks
I have both phillips and cdp, and I bought some IPO from atm machine maybe 5-6 years ago, and hardly log in and check since then. So today I logged in and I can only see the shares in my CDP, and not in my phillips. How can I sell it? Do i just set a sell order in phillips, and once it's fulfilled they will remove it from my CDP?
I just re-activated my poem account, so I guess it's gonna take a few days for them to verify it.
I had some stocks i bought through poem long ago, as long as it showed up on cdp it means it's linked correct? Thank you so much for the reply!