An option on HKEX's FINI platform: a clearing participant (such as a broker) may opt in to calculating its FINI pre-funding requirement (PFR) as min(the total value of its application list, the maximum value of shares that can be allocated to the public offer) instead of the full application value. The maximum is based on the highest clawback and other discretionary re-allocations permitted by the prospectus, can be calculated before the offer opens and is displayed in FINI. It applies to the clearing participant's PFR and does not set the amount frozen from investors; how much application money a broker collects from clients varies by broker. The maximum is written PO_MAX in the formula, hence the market term POMAX. Basis: HKEX FINI FAQ E15.
The links above lead to official sources such as HKEX and the SFC. The explanation on this site summarises them and may differ from the official definition; the official documents prevail.
This page explains the HK IPO term "Compressed Pre-funding" and links to related terms. Definitions are compiled from HKEX Practice Note 18 and the Listing Rules, for understanding subscription rules only — not investment advice.
