Wednesday, April 9, 2008

Apply to Initial Public Offering (IPO)

Initial Public Offering (IPO), is the first sale of the share of the company in primary market. This offer of the particular company share has not yet traded in the stock market before. Therefore, the data of the company can be obtain is limited. Since this stock never trade in the stock market before, the future performance of the company become a risk. The only source of the data is their prospectus come together with their IPO.
There are 3 methods to apply IPO for the company to be list in the Kuala Lumpur Stock Exchange (KLSE). First recommend is the fastest and easiest way, "Online e Share Application". Second method is "Apply via Bank ATM machine". The last is the traditional method which you have to get "IPO Application Form" from the securities firm to fill in and post.

Online e Share Application:
Available at : Maybank2u e-IPO, CIMB e-IPO, and RHB e-IPO.

ATM Machine:
Available at: Maybank, CIMB, RHB, (other no sure)

IPO Application Form:
Available at: Any securities firm.

The thing you have to prepare is your Central Depository System (CDS) account number. Total 15 numbers. You have to use this number when you apply IPO.

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