Traditionally, IPO shares subscriptions were only available to institutions and selective high net worth individuals. Tiger Brokers launched the revolutionary IPO shares subscription services that lowered the investment requirement from millions of USD to an affordable level for many retail investors. By participating as a member of the underwriting group or selling group, Tiger Brokers distributes the IPO shares to its clients after settling with the listing company.
US IPO shares subscription provided by Tiger Brokers, accumulatively
Exclusive to Tiger Brokers
*Data as of 2020 year 12 month 15 day
From the year 2020, Tiger Brokers provides for 16 of US IPO shares subscriptions
Probability of gains on the first day of trading
Average gains on the first day of trading
Maximum gains on the first day of trading
Accumulative return from 16 US IPO subscriptions
As of 2020.1.1-2020.8.28; USD/RMB exchange rate=6.908; the calculation of the accumulative gain from 16 US IPO stocks assumes that the position for each is 100 shares and are sold at the opening price
No subscription fee, Tiger Brokers covers all the popular US IPO suscriptions
Participating in IPO as an underwriter comes with advantages in IPO shares allotment
Best for all system + Proportional Allocation, highest allocation/subscription rate
Less locked-up funds for omnibus accounts. Locked-up funds are released T+0 if not allocated.
Trading and subscribing all in one account; never have to switch between different accounts
In between IPO subscriptions, transfer unemployed funds into "Idle Money Manager" to receive interests
1. Enter Tiger Trade App - Discovery - IPO Subscription - US Stocks
2. Click the "Subscribe" button on the corresponding stock information page
3. Check the box after reading the company prospectus and proceed to the next step
4. Check Part A of the compliance statement
5. Check Part B of the compliance statement and sign, then proceed to the next step
6. Click Subscribe Now
7. Select the subscription amount
8. Confirm the subscription
For margin accounts, you can subscribe with currencies other than US dollars if there is sufficient funds. But keep in mind that it may result in borrowing fees (borrowing US dollars from Tiger Brokers). If your positions are not closed on the first day of the allocation, interest will be charged. No interest will be charged in not allocated or that the positions are closed on the first day of allocation. For cash accounts, only US dollars can be used in IPO shares subscription. You can exchange for US dollars using other currencies on the app. The ending US dollar balance should meet the minimum subscription requirement.
Under most circumstances, the minimum required subscription amount for US listings is 100 shares. However, different companies can have different minimum requirements. You do not need to increase in multiples on top of the minimum amount, e.g. 105 shares, 120 shares, and 150 shares are all allowed. If, however, the margin in the subscriber's account is not sufficient to cover the amount filed, the subscription will be automatically reduced to the amount sufficient for margin. If the available funds in the account are not enough to cover the minimum subscription quantity, the subscription will be rejected.
The IPO price range of the new listing will be announced upon the opening of IPO shares subscription. For omnibus accounts, the locked-up amount will be calculated using 80% of the bottom price range. The final allocation amount will not surpass the subscription amount. For instance: A subscriber subscribed for 100 shares of PDD and the IPO price ranges from 16-19 USD per share. Then the amount in lock-up will be 1,280 USD (16*80%*100 = 1,280 USD)
It should be noted that the margin associated with subscribing in IPO shares will be in lock-up to ensure successful delivery of new shares. Locked-up funds are not charges or prepayments. Funds cannot be used in other investment purposes during the lock-up period. If not allocated, the lock-up funds will automatically be released.
Tiger Brokers omnibus account: Funds are in lock-up immediately after the subscription is confirmed.
Tiger global account: When subscription period ends, the subscription status should show "Confirmed".
Note: Under Tiger Brokers' global account, the funds used for subscription are not in lock-up before the subscription ends and can still be used for other investment purposes. However, after the subscription period ends, if there is not sufficient funds that satisfies the margin requirement, the subscription will be rejected.