Futu Securities Was Only Online Underwriter for Xiaomi's Billion-dollar IPO Subscription

    2018-06-25 22:32:00  PT

Xiaomi was the first company to list in Hong Kong after the Hong Kong exchange changed its rules to allow dual-class share structures. CLSA, Goldman Sachs and Morgan Stanley are the joint sponsors for this IPO.

Among the group of well-known investment banks, Futu Securities is also one of the underwriters. In fact, Futu is the only online book-keeper for Xiaomi's billion-dollar IPO subscription.

This is not the first time Futu Securities acted as underwriter for a big unicorn IPO. The company has successively participated in a number of IPO projects since 2016.

Futu was the only online brokerage company that participated in underwriting Meitu Inc., ZhongAn Online P&C Insurance Co. Ltd., China Literature Ltd., and Yixin Group.

Futu is licensed both in Hong Kong and the U.S. as an online broker, which is one of main reasons it was selected by these internet unicorn companies. Through Futu's fully digitized online securities brokerage platform, clients can easily deposit funds, trade shares and check live data all in one place, and the platform adheres to the highest privacy and security standards.

In addition, being fully licensed means that Futu has the ability to underwrite IPOs, which puts Futu in direct competition with traditional investment banks.

Futu's unique product and technology advantages are the other factors that have won the favor of technology companies, such as Xiaomi and Meitu. Similar to Xiaomi, Futu encourages product innovation and strives to enhance the user experience. Take Hong Kong IPO subscription as an example: Futu has developed a one-click new system that enables clients to finish the whole subscription process, including leveraged financing, in less than one minute on one page. The company also rolled out zero-deposit, zero-collateral new share subscriptions services. New after-hours trading services are about to launch soon.

Even though Futu only launched the new share subscription services less than six months ago, the business has developed rapidly. This time, it has reserved a more than 10 billion financing quota for Xiaomi's IPO to meet our clients' demand, which is the largest amount in the history of Futu.

Recently, Futu announced the launch of the first Futu New Economic Index, adjusted semi-annually. The index serves as an indicator of new-economy companies that are listed on the Hong Kong, U.S. and mainland China stock markets. Investors are all waiting to see whether Xiaomi will be included in the new index in six months.