Futu Holdings Limited ("Futu"; stock code: FHL) recently announced that it has become a listed company on the NASDAQ exchange in the USA. The issue price was US$12 per ADS with an IPO offering size of US$90 million, with targeted placement size of US$70 million. BOCI acted as the joint underwriter, also the only Chinese investment bank in this transaction.

Futu is an online brokerage company transforming the investing experience by offering a digitized brokerage platform, and provides investing services through its proprietary digital platform, Futu NiuNiu. As one of Futu’s significant strategic shareholders, Tencent agreed to cooperate with Futu in areas including user traffic sharing, content sharing and cloud infrastructure support. Futu’s primary fee-generating services include trade execution (brokerage), clearing and settlement, margin financing and securities lending, which allow its clients to trade securities, such as stocks, warrants, options and exchange-traded funds across different markets. In addition, Futu provides corporate services including ESOP management and IPO marketing, which are complementary to its retail business. According to Oliver Wyman, Futu ranked fourth among Hong Kong online retail brokers in terms of online brokerage revenue for the six months ended June 30, 2018, and its commission rates are approximately one-fifth of the average rate offered by the leading players in Hong Kong.

BOCI is a wholly-owned subsidiary of Bank of China, which provides corporate finance, M&A, financial advisory, securities brokerage, fixed income, private banking, asset management, direct investment, equity derivatives, leveraged and structured finance, and global commodities services for domestic and foreign clients. BOCI has long maintained a leading position in Hong Kong IPO, stock brokerage, bond issuance and MPF market, as well as in the capital market in Mainland China.