HSBC Breaks Own First-Day Margin Loan Record for Kuaishou IPO
What’s new: Banks and brokerages lent out HK$270 billion ($34.8 billion) in margin financing for the retail portion of short video app Kuaishou’s IPO on Tuesday, the first day of a four-day subscription period, according to Caixin’s calculations and media coverage.
The amount marks an oversubscription rate of more than 200 times, as the TikTok-like app aims to raise HK$1.05 billion via stocks sold to retail investors.
What’s the background: HSBC Holdings PLC said it has set aside HK$150 billion of loans for its customers to subscribe for Kuaishou’s shares, and the lender’s spokesman added that over two-thirds of the loans had been taken up on Tuesday, breaking the bank’s record of first-day subscription loan amount.
The current share allocation to individual investors is 3.5% of a total 365 million shares, but Kuaishou can raise it to up to 6%.
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