Recent hot topics around the stock market are how to subscribe to an IPO (Initial Public Offering). We will be sharing how to subscribe to IPO shares through online banking. 

Disclaimer: The information and print screens in this post are for educational purposes only. Shall not be construed as an offer, invitation or solicitation to buy or sell any securities. We do not associate with any banks, financial institutions, or any IPO companies. Investing in the equity market or IPOs incur risk. Investors should read and understand all IPO’s related documents before investing.

You may watch our video below to find out more why some companies with good fundamentals but stock prices won’t grow at the video below:

 

https://youtu.be/wtGsK8PSCXU

 

 

How to Subscribe to IPO

 

Step 1: Have a CDS Account/ Trading Account.

 

Every retail investor who wishes to invest or trade in the stock market must register a trading account with local brokers. You need to have a CDS account in order to subscribe to IPO shares. If your subscription is successful, the shares will transfer to the CDS account you provide. 

 

Take note: Local brokers are not necessary to be banks. This is a misunderstanding by the public that only banks offer trading account openings. Not all banks have broker licenses and not all brokers are attached to banks. Usually, banks with broker service are just subsidiaries of a bank or a sister company model. 

 

Broker licenses are governed by separate bodies such as the Securities Commission and Exchange (Bursa Malaysia). At some point, the central bank (Bank Negara) might govern certain areas too, such as the Anti-Money Laundering act. 

 

For trading account opening, you may look at the link below for account opening and you must be 18 years or older. Do read the Terms and Conditions before opening an account. 

 

Charges for account opening: RM 10 (charged by Bursa Malaysia)

 

Step 2: Subscribe through online banking

 

Disclaimer: we don’t represent any banks or financial institutions. For more details or encounter any trouble in subscribing to an IPO, please contact the respective banks. Shall the IPO subscriptions be on a balloting basis, there might be chances that your subscription may not be successful.

 

With recent years of improvement by Bursa Malaysia, investors can now subscribe to IPO shares via online banking. However, some IPOs may not be available on some online banking sites. Do check the prospectus of the IPO company for ways to subscribe. 

 

1 of the widely used online banking to subscribe IPOs are Maybank2u & Cimbclicks. We will show the examples of where to click to subscribe in both of these online banking. 

 

Maybank2u

 

Screenshot 1

 

Screenshot 2

 

1. Login to your Maybank2u and click on “APPLY” at the top right of the screen.
2. Click on “investment” as shown in screenshot 1 above.
3. Look for “eIPO” and click on “APPLY NOW”
4. Select the account that you wish to transfer the funds to subscribe to. 
5. Enter your CDS account number.
6. Key in all the information required.
7. Select the IPO stock you wish to subscribe to & enter the number of units.
8. TAKE NOTE: Don’t forget to read the prospectus & declaration before you subscribe for IPO and make sure you understand and the investment you are making is suitable for your risk. 
9. Once you have read, you may check the “I have read and agree with the documents above” 
10. Click submit.

 

CIMBCLICKS

 

1. Login to your Cimbclicks online banking, look for “apply & invest” at the left side bar.
2. Scroll down until you see “eIPO”.

3. Select the IPO you wish to subscribe to and remember to read the prospectus and understand the investment you are making.
4. If you are clear and understand the documents you have read. Click “Apply”.

5. Read and understand the declaration, make sure you fulfilled all of the points under the declaration. 
6. If you accept the terms and conditions, you may click “Agrees & Apply”

7. Fill in all the information and your desired units to subscribe.
8. Double-check your CDS account no. and other details. 
9. If all are good, you may click “Submit”.

Above are the examples to subscribe to IPO through online banking. Should you encounter any technical issues while submitting your application. Kindly contact your bank. 

Investing in IPO

Usually, companies will put a lot of effort into promoting their IPO to make sure there are enough subscribers for them to get listed. (there’s a threshold of subscribers for all IPOs. IPO will call off if the company is not able to meet the minimum required subscribers.)