FAQs
Electronic Share Application and Internet Share Application
- What is Electronic Share Application (ESA)?
Electronic Share Application (ESA) is a facility that allows for application of Initial Public Offering (IPO) through an Automated Teller Machine (ATM) of the participating financial institutions. This facility is provided by both Tricor Investor & Issuing House Services Sdn Bhd (Tricor) and Malaysian Issuing House Sdn Bhd (MIH).
In a nutshell, ESA is a mode of applying for IPOs in a paperless manner.
- What is Internet Share Application?
Internet Share Application (“ISA”) is a facility that allows for application of IPO through an online share application service provided by Internet Participating Financial Institutions (“IFPI”). This facility is provided by both Tricor Investor & Issuing House Services Sdn Bhd (Tricor) and Malaysian Issuing House Sdn Bhd (MIH).
- Which financial institutions provide ESA and ISA facility?
ESA and ISA facility is provided by financial institutions which have formulated the handling of IPO processes with the Issuing House. You may find the list of financial institutions offering ESA and ISA services at the IPO Prospectus.
In the context of ESA, these financial institutions are commonly known as PFI, while the ISA is provided by the IPFI. The list of PFI and IPFI is as follows:
PFI
IPFI
Affin Bank Berhad
Affin Bank Berhad
Alliance Bank Malaysia Berhad
Alliance Bank Malaysia Berhad
Ambank (M) Berhad
CIMB Bank Berhad
CGS-CIMB Securities Sdn Bhd
Malayan Banking Berhad
Malayan Banking Berhad
Public Bank Berhad
Public Bank Berhad
RHB Bank Berhad
- What are the pre-requisites for an IPO applicant using ESA?
All you need is:
- A banking account and a valid ATM card with any one of the PFI; and
- A CDS account directly under the name of the applicant, which is opened with any of Bursa Depository's ADA/stockbroking company.
- What are the conditions governing the ESA and ISA operations?
The respective PFI or IPFI will set out the procedures and instructions on the usage of these facilities. Similarly, the Terms and Conditions can be found in the prospectus issued by the IPO’s offeror.
- How do I use the ESA facility?
Each PFI may have different procedures in using the ESA facility through its ATM. Therefore, you are advised to check with the relevant PFI for detailed procedures when using ESA facility for an IPO application.
- How does the facility function during an IPO?
In brief, the IPO applicant will apply for a specific IPO by entering the appropriate details via the PFI's ATM or via the IPFI online. Once the details are entered successfully, the applicant's bank account will be debited for the appropriate amount accordingly. The PFI and IPFI will then collate all the applications of its CDS account holders and forward them to the relevant Issuing House for processing and balloting.
- What will happen in the event of a successful IPO application via ESA or ISA?
Upon completion of the balloting process, the CDS account of the successful applicant will be credited with the quantity of securities in accordance with the allotment. The applicant will also receive a Notice of Allotment from the Issuing House confirming the quantity of securities to be credited into the investor’s CDS account.
- What will happen in the event of an unsuccessful IPO application via ESA or ISA?
Upon completion of the balloting process, the Issuing House will issue an instruction to the relevant PFI on all its CDS account holders' unsuccessful applications. The PFI upon receiving this instruction from the Issuing House will credit the appropriate amount back into the bank account of the unsuccessful applicants.
Note: The above FAQ on ESA and ISA facilities are only intended to provide IPO applicants with a brief overview on these facilities. The procedures and guidelines governing the operations of these facilities may vary from one PFI or IPFI to another. If in doubt, applicants are encouraged to seek necessary clarification on the usage of these facilities directly from the respective PFI and IPFI or Issuing House.