An investor that signs a subscription agreement before the IPO and commits to subscribe for a set number of shares at the offer price. Under HKEX Guidance Letter HKEX-GL51-13, cornerstone investors subscribe in the placing tranche at the offer price and must pay in full before dealings begin; they may receive no direct or indirect benefit other than a guaranteed allocation; their shares are generally subject to a lock-up of at least six months after listing; and they must be independent of the applicant and its connected persons and have no board representation. Cornerstone investors' names and amounts are disclosed in the offering documents. Basis: HKEX Guidance Letter HKEX-GL51-13.
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 "Cornerstone Investor" 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.
