What Queries You Have on Buying Stocks and Applying IPO at KLSE?
Firstly, I cannot claim to be an expert in each and every aspects. But you know what, sometimes we just have these unknown things inside us – with no one to turn to. We always hope we could refer to someone who might be able to help, without all the fluff or conflict of interest. Secondly, although information is just a few click away nowadays, sometimes it takes too much time digging for it or there’s so much redundant things – causing information overload. Either that, or it doesn’t come cheap 🙂
But when follower of LCF on Personal Finance, Chow YW sent me these 9 questions regarding stocks investing and IPO application at KLSE, I am happy to share what I knew or found out. This is in response to my previous viral article – Dissecting IGB REIT IPO Prospectus
1) If let say I already put my OSK CDS account in Maybank to apply for IPO, can I put this same OSK CDS account in my CIMB bank as well to apply for IPO?
Answer: Multiple applications using your own name and name of others is an offence under Capital Markets and Services Act 2007. This offence comes with severe penalties – click here for more details from Malaysian Issuing House.
2) If we buy the share online, we will be charged the minimum RM28 (including brokerage fee, clearing fee and stamping duty); how about if we sell the shares, will we be charged as well?
Answer: Yes. Incidentally, it is not always RM 28 minimum. Different brokerages have different brokerage fees structure, depending also on transaction value. OSK and Maybank is RM 12 only. This is applicable for online trading. If transaction is done through phone with broker assistance, it is higher. For a comprehensive table on this, you can visit this link from 1 Million Dollar Blog. Might not be up-to-date though.
3) Will we be charged any fee if we apply IPO via Maybank or CIMB?
Answer: Yes. Just a nominal amount. Normally around RM 1 to RM 2.50 for various banks.
4) When can start to apply for IGB REIT IPO (date)?if applying online, can we apply the IPO after office hour (eg 8pm) and public holiday, saturday and sunday or should be applied within office hour?
Answer: Absolutely, non-office hours are ok. However, it depend on bank internet system maintenance. For example, Maybank2u will be down for maintenance shortly after 12 am, so you cannot do any internet banking at that time anyway.
5) After the IPO is approved, can I see it on my OSK CDS account as well or just being shown in Maybank?
Answer: Approved IPO shares amount will be credited to the brokerage account used for application on the date stipulated in the prospectus. Please click here for an example where I did shown a screenshot of the Important Dates of IGB REIT Prospectus.
6) Where to see the lists of IPO which will be offered in a year?
Answer: You can click here for a section called Prospectus Exposure in Securities Commission website.
7) What is the differences between the retail offering and institutional offering of IPO?
Answer: Retail offering is for retail investors like you and me, and similarly for institutional offering, it is for non-bank person or organization that trades securities in relatively huge quantities or ringgit amounts. Institutional investors qualify for preferential treatment and lower commissions; example, EPF or insurance companies.
8) There are 2 types of dividends rite? One is taxable and other is not taxable?
Answer: Do you mean Imputation system versus Single Tier System? Please refer to this link on LHDN website. Dividends are taxable, just that depending on which system, they would be taxable or non-taxable in the hands of investors.
9) Any idea on when will be the launching of IPO issue of Astro, any comment on that?
Answer: The date is yet to be determined from what I see from the Astro Prospectus – which you can get from this link at SC website. No comment so far from me 🙂 But you could Google it and find a recent interesting article on Dali’s Malaysia Finance blog.
Hope that helps. And keep any questions coming by leaving a comment below, because sometimes, we learn best when we are served with questions which we don’t already knew.