FAQ – How to subscribe in an IPO
Subscribing for securities in an Initial Public Offering (IPO) for the first time is not always straightforward. There is also no universal standard procedure, as different parties may have their own preferred methods for submitting an application. Below, we have listed the most common questions we receive in connection with IPO subscriptions — hopefully providing you with some guidance on how the process works. If you still have questions about how to subscribe in an IPO where Nordic Issuing acts as issuing agent, you are always welcome to contact us by phone or email.
I have never subscribed for securities in an IPO before. How do I proceed?
In most IPOs, Nordic Issuing refers investors to submit their application via their bank. If you are a customer of Avanza or Nordnet, you need to log in to your online bank and apply for the number of securities you wish to subscribe for while logged in. On each assignment page on Nordic Issuing’s website, you will find direct links to the offer at both Avanza and Nordnet when subscription is to take place via the bank.
What should I do if my bank does not offer IPO subscription services?
If your bank does not allow you to subscribe for securities directly, you must complete a subscription form and send it to the party responsible for collecting the applications — usually the issuing agent (in this case, Nordic Issuing).
On the subscription form, you must indicate:
- The number of securities you wish to subscribe for,
- Your custody or VP account,
- Your bank, and
- Your personal information.
It is important that you provide accurate contact details and write clearly if filling out the form by hand. Illegible or incorrectly completed forms may be disregarded. In addition to the information you provide, the subscription form also contains key details such as the subscription price, subscription period, and instructions for different account types (Investment Savings Account – ISK, and Endowment Insurance Account – KF). The full terms and conditions of the issue can always be found in the prospectus or information memorandum available on the company’s or Nordic Issuing’s website.
What is a KYC form and when do I need to complete one?
A KYC form (Know Your Customer) is a standard form required under the Swedish Act (2017:630) on measures against money laundering and terrorist financing.
It must be completed by anyone who:
- Subscribes for securities corresponding to EUR 15,000 or more, or
- Has subscribed for shares through Nordic Issuing more than ten (10) times in the past two (2) years.
If you are, or have a close relative who is, or has been within the past 18 months, a PEP (Politically Exposed Person), you must also complete a KYC form. PEPs include, for example, judges of the Supreme Court, senior government officials, and similar positions. You can complete the anti-money laundering form digitally. Your BankID digital signature counts as identification, meaning no additional documents are required.
How will I know if I have been allocated shares?
Allocation is always confirmed via a settlement note (almost like an invoice) sent by email. If you subscribed for securities through your bank, your bank will notify you of the allocation and handle the payment. The settlement note is usually sent a few days after the subscription period has ended. If you have not received a settlement note after the end of the subscription period, you have most likely not been allocated any shares. However, sometimes email addresses are entered unclearly on the subscription form, which can cause delays. Therefore, always make sure your email address is written clearly, and check your spam or junk mail folder if you cannot find your contract note.
Can I be left without allocation, and will I be notified if that happens?
Yes, you may receive no allocation.
The main reasons for not being allocated shares are:
- The issue was oversubscribed,
- Your subscription form was incorrectly completed, or
- You failed to submit requested information (such as KYC form or ID) on time.
No separate notice is sent to applicants who do not receive an allocation.
How do I ensure my shares are deposited into my ISK or KF account?
To have your securities delivered to an Investment Savings Account (ISK) or Endowment Insurance Account (KF), you must contact your bank to confirm whether it is possible to deliver your new securities to such an account and, if so, how to proceed.
When is payment due?
Payment must be made in accordance with the contract note, which is normally sent a few days after the subscription period ends. If you submitted your application through your bank, it is important to check with the bank how their payment process works and when you need to have funds available in your account. Nordic Issuing can deliver the securities to you only after payment has been received in the designated account and registered by us.