The placing part offered to institutional and other professional investors, allocated by underwriters from the order book without a ballot. Under Practice Note 18, at least 40% of the offer shares must go to placing tranche investors other than cornerstone investors. An investor may receive shares in only one of the placing and public subscription tranches, and issuers and underwriters must take reasonable steps to identify and reject placing applications from investors who received public subscription shares. When the public offering triggers clawback, the international placing is reduced accordingly. Basis: Practice Note 18.
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 "International Placement" 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.
