Your financial plan shows that your investment portfolio should include shares. You are aware of the investment risks of the capital market and you’re prepared to take it. For a start, you have decided to invest in shares by participating in an initial public offering (IPO) exercise. In an IPO exercise, investors will be able to buy shares directly from the company issuing the shares.

How to start?
Here are some simple steps:

• Read and understand the prospectus
• Check the closing date for submission of application
• Understand the company you’re buying
• Get as much information possible on the IPO exercise from Bursa Malaysia website or the newspapers
• Choose how you want to make your application either by using -
  a) the conventional printed application form; or
  b) the Electronic Share Application (ESA) facility.
  

Using the application form
The application form is usually available in major newspapers and at issuing houses, stockbroking companies or financial institutions. You should send only ONE application form, as sending multiple applications is an offence under the Securities Industry Act 1983. If convicted, you are liable for a minimum fine of RM1 million or 10 years jail or both.

Before you apply —

• check your personal details – it must be the same as in your identity card
• open a CDS account if you have not
• to pay for your shares, attach a banker’s draft or cashier order for the amount of shares applied
• send the application form by post or directly to the issuing house.

If you are unsuccessful, you will receive a refund check from the issuing house.