At the beginning of 2021, the most "eye-catching" and "gold-absorbing" new shares are Kuaishou Technology. The biggest increase on the first day of listing was more than 190%, and the total market capitalization exceeded HK $1 trillion, ranking fifth in the market capitalization of Hong Kong stocks. As a result, the two founders, Su Hua and Cheng Yichao, were worth more than HK $100 billion, setting the first IPO myth this year.

Eye-catching gains like Kuaishou Technology can be seen everywhere in the IPO of Chinese stocks since 2020. The hot market, which lasted from 2020 to the present, has created one business legend after another. Nuohui Health, the first stock in China's cancer early screening and Cloopen Group, the first stock in China's SaaS listed in February, both rose more than 200% on the first day. Lufax Holding has become the largest financial technology IPO case for US stocks so far with a financing amount of US $2.363 billion. After the listing of nature's porter NONGFU SPRING CO., LTD., the mysterious controller Zhong Kui surpassed Ma Huateng and became the new richest man in China with a total fortune of US $62.9 billion.

Accompanied by this grand IPO carnival into the public view, there are U. S. stocks Hong Kong stock investment platform Futu.Over the past year, Fortune has not only created beautiful IPO distribution results for a large number of US and Hong Kong stock companies, but has now accumulated more than 100 IPO distribution services, creating 27 10 billion subscriptions in a row; its market capitalization has also risen from about US $1 billion in early 2020 to a peak of US $27.5 billion before press time.

Although there is no shortage of growth myths in the business world, why does Fortune stand at the forefront of Internet securities firms in the United States and Hong Kong stocks?

Take advantage of the situation, user value is the first competitiveness

The outbreak of Futu IPO business is inseparable from the two "Dongfeng".

The first Dongfeng can be traced back to the listing trend of XIAOMI listed in Hong Kong in 2018. In the cooperation with XIAOMI, Futu verified that "user value" is the first competitiveness of Futu IPO business.

Four years after the loss of BABA, the HKEx announced on April 24, 2018 that it would allow companies with the same shares and different rights to list on the Hong Kong main board a week later. Driven by the new rules, a total of 205 companies were listed on the Hong Kong Stock Exchange that year, with the largest number of new shares in the world. On the largest day, eight companies were listed at the same time, and even the gong ringing the bell of the Hong Kong Stock Exchange was not enough. Only one of them could ring one. Of these eight enterprises, five are new economy enterprises.

The oncoming tide of listing of new economy enterprises has strongly stimulated the central nervous system of securities firms. Futu, is one of the first securities firms to act, and successfully grasped the first IPO business take-off point: XIAOMI.

On the day the new rules of the HKEx came into effect, the news that XIAOMI would submit the table to the HKEx spread like wildfire. Under the high voice of Fortune users, Wu Biwei, senior partner and president of financial and corporate services, immediately contacted Li Wanqiang and CFO Zhou to discuss the promotion of IPO and the distribution of new shares. The two sides hit it off, and Futu became the only Internet securities firm on XIAOMI's prospectus, acting as an underwriter with top investment banks such as Goldman Sachs Group and Morgan Stanley.

Judging from the subscription data, XIAOMI made the right decision this time-more than 20, 000 people subscribed for XIAOMI's new shares through Fortune, with a subscription amount of more than HK $3 billion. According to media reports at that time, the subscription amount of Futu had already exceeded XIAOMI's public offering portion (HK $2.398 billion), and the number of subscribers was close to 1/5 of the whole market.

The effect of IPO distribution cooperation is better than expected, so that both Futu and XIAOMI see more opportunities. Ten days after listing, we launched a new cooperation with Futu-the new product launch of "XIAOMI Max3" was broadcast live online through Futu Niuniu App. Wu Biwei, as a speaker, shared in this live broadcast, using the big screen of "XIAOMI Max3" to buy and sell XIAOMI shares in Futu.

This live broadcast, let XIAOMI once again verify that the cooperation with Futu is to kill two birds with one stone-at the same time to promote corporate value and obtain brand exposure. In the future, XIAOMI's performance conference and new product conference will be launched in Futu Enterprise for the first time, and repeatedly gain millions of exposure, and the number of fans of XIAOMI Enterprise is as high as 1.58 million.

Why is the cooperation with XIAOMI going so smoothly? The key words obtained by Fu Tu's internal review are:"user value".

When XIAOMI IPO, XIAOMI's users were mainly concentrated on Chinese mainland, and his popularity in the Hong Kong market was limited. XIAOMI hopes to take advantage of the highlight moment of IPO in Hong Kong to do market education and brand promotion at the same time.At this time, Futuo Niuniu has accumulated a large number of high-quality US stock Hong Kong stock investment users, in addition to XIAOMI to do public subscription of new shares, but also provide brand exposure and other added value.

Most of the users of Futu are a new generation of TMT, Internet practitioners and KOL in the industry, who pay close attention to and understand the value of new economy enterprises such as XIAOMI, and have the purchasing power of both stocks and products.

Liu Kunda is a typical Fortune user representative, an experienced Hong Kong investor and a technology blogger with 200000 followers.

"after winning the lottery with the new XIAOMI, I immediately placed an order for a set of XIAOMI products. The identity of the shareholder made me pay more attention to XIAOMI. Liu Kunda posted his purchase records of winning the lottery and XIAOMI's new products on Twitter. The number of views exceeded 1 million, 7-8 times his usual views, and many fans also posted their records of placing orders in the comments area.

As early as 2016, Futu began to provide IPO distribution and promotion services for new economy enterprises.In the process, Wu Biwei and his team have been thinking about how Forto's IPO business is different from that of traditional securities firms.

The great success of XIAOMI's IPO cooperation and the live broadcast of "XIAOMI Max3" new products has made Wu Biwei more clear that relying on the "user value" of a large number of US and Hong Kong stock investors, the company of Fortune IPO business is not only limited to the subscription amount of new shares, but also to the moment of listing."We are the long-term companions of the new economy enterprises. The core value that Futu provides for enterprises is to attract a large number of accurate users who continue to pay attention to the stocks, products and brands of enterprises. "

After XIAOMI, Fu Tu successively served as Yingke, 51 Credit Card, Meituan comment, and Cheng Yilong. IPO underwriters of new economic enterprises, and gradually formed a "platform + operation" of the promotion of new shares.

At the beginning of 2020, the global market released a lot of water, and the secondary market ushered in a super bull market. In 2020, Hong Kong stocks listed 144 enterprises in the whole year, and 35 Chinese new economy enterprises listed on US stocks, of which the total IPO financing of US stocks reached 4.7 times that of 2019.

Fortune ushered in the new stock business for the second time "Dongfeng", once again taking advantage of the situation.In 2020, Fortune participated in the underwriting and distribution of more than half of the listed companies in the United States, and the service list included Lufax Holding, KE Holdings Inc. and XPeng Inc., which ranked the top three in terms of financing. At the same time, as XPeng Inc. 's IPO underwriter, the amount subscribed through Fortune reached US $2.21 billion, even exceeding the US $1.496 billion raised by XPeng Inc..

Whether in terms of underwriting / distribution quantity or distribution performance, Futu is far ahead in US and Hong Kong stocks. Since 2020, Futu has created 27 IPO cases with subscriptions of more than NT $10 billion, including Nuohui Health, Kuaishou Technology, Cloopen Group, Yueke, Lufax Holding, KE Holdings Inc., XPeng Inc., NONGFU SPRING CO., LTD., JD Health, Blue Moon. All the well-known new economy enterprises are on the list of "ten billion dozen new clubs".

In 2021, the IPO pageant of the bull market continues, and the momentum of Futu's new share business continues unabated. Kuaishou Technology, Nuohui Health, and Cloopen Group are all Futu's IPO customers. Futu is not only the only Internet securities firm that has boarded Kuaishou Technology's prospectus, but also created 42.6 billion subscriptions for Kuaishou Technology. With the new experience of Futu and the continuous optimization of the promotion system, the subscription amount and number of new shares subscribed by Futu continue to set a new record.

Rise abruptly based on accumulated strength, serve more than 100 Chinese companies with IPO

External forces can only accelerate the process, and what really allows Futu to seize the opportunity is that it has been practicing many internal skills long before the advent of the bull market. In addition to polishing the "platform + operation" promotion system, Futu is also an explorer for Internet securities firms to participate in the IPO distribution of US stocks, allowing corporate US stocks IPO to open the door to individual investors.

But why do companies need individual investors to participate in IPO? To put it simply, the participation of individual investors can significantly improve the exposure of enterprise value, brand and products.

"people pay special attention to what they have, that is, the endowment effect in psychology. Our backstage user behavior data model shows that an investor's attention will increase several times after owning a stock, and even 40 times more if he makes money on the stock.This kind of attention will also be like XIAOMI, extending from stocks to the enterprise's products and brands.Wu Biwei added, "it is often the easiest time for investors to buy a stock because they win more than lose in the new game and are less difficult to operate." "

This also determines that Fortune's US stocks are new and have brought their own "inclusive attributes" since their birth.

Unlike Hong Kong stocks, which have a mature new mechanism, the IPO of US stocks has always been a game for a very small number of people, such as issuing enterprises, investment banks, institutional investors and so on. The process for individual investors to participate in the innovation of US stocks is very tedious, and it is not only time-consuming and laborious to pass the offline account opening authentication of private banks, but also a large expense for each new fee.

The first two challenges for individual investors to participate in US stocks are:How can companies listed in the United States recognize the value of individual investors' participation in subscription and allocate shares of new shares to Fortune? How to reduce the difficulty for individuals to participate in the US stock market?

It is very difficult to get a share of hot US stocks, because hot new stocks often have no worries about financing issues, and oversubscription is common. When DouYu International Holdings Limited, the Fortune US stock IPO cooperation project, went public in the United States, the financing was quite smooth and was oversubscribed.

Yang Zhengxin, a businessman in charge of DouYu International Holdings Limited, pointed out that what first moved DouYu International Holdings Limited was that Fu Tu could bring brand exposure, which was more intuitive than the subscription ability of individual investors and their contribution to future liquidity. "everyone hopes to use IPO to do brand communication, and DouYu International Holdings Limited and Futu users are mostly male, Internet practitioners, is a typical user of the live broadcast industry. "

DouYu International Holdings Limited also offered to broadcast the US bell live on the platforms of DouYu International Holdings Limited and Futu. Wu Biwei and Huang Gurui, product manager of DouYu International Holdings Limited, served as commentators for the live broadcast. China and the United States had real-time online interaction, and a large number of cattle friends sent blessing messages in the studio.

With KE Holdings Inc., XPeng Inc., MINISO Group and other US stock 10 billion subscription cases coming one after another, the strength of Futu's IPO distribution in US stocks is more obvious to all, and the resistance of US stocks IPO to take goods is getting smaller and smaller.

At the same time, after the individual investors of Futu platform win the lottery, the contribution to the post-market liquidity is also very considerable. In the IPO of KE Holdings Inc., XPeng Inc., MINISO Group, Kuke Music Holding Limited and other new economy enterprises, Futu's subscribers all won the lottery, allowing enterprises to pry the largest market attention with a small number of new shares.

However, getting the share of new shares only solves half of the problem, and it is necessary to reduce the difficulty for individual investors to participate in the fight against new US stocks in order to allow more people to participate, which requires solving a series of complex problems such as system construction, money and goods settlement, and so on.

Us stocks do not have a new share allocator similar to that of the Hong Kong Stock Exchange. each time they have to pick up goods from different investment banks, and the distribution time is concentrated in the 1-2 hours before the opening of the listing day. Unlike investment banks, which mainly distribute goods to a small number of institutions, Futu needs to distribute goods on a large scale and with high concurrency to a large number of users.

"time is tight and the task is heavy, which is a great test for the efficiency of internal and external communication and cooperation within the team and the distribution efficiency of the system. "Dai Yu, product manager of IPO systems for Fortune American stocks, explained. When Futu started the research and development of the US stock IPO system, Dai Yu and the team had almost no reference samples, so they could only start from scratch and repeatedly investigate, test, review, retest and review.

In less than 3 months, Dai Yu put forward more than 100 requirements to R & D. By the time he left Futu's office in Kexing Science Park countless times, the bustling park of ten thousand people had fallen silent.

Dai Yu is pleased that after the launch of the new function of US stocks, users can quickly open an online account in just a few minutes, greatly improving the efficiency of users' participation in new US stocks. In the follow-up DouYu International Holdings Limited, LIZHI INC, So-young International Inc, Yunji Inc and other series of Chinese stocks in the IPO, Futu have obtained good subscription results.

Up to now, Futu has cumulatively served more than 100 Chinese stocks to go to Hong Kong for IPO, and it is one of the Internet securities firms serving the largest number of IPO enterprises in China's new economy.

Provide multiple values of IPO+PR+IR for enterprisesTo be the long-term companion of new economy enterprises

Now, like XIAOMI, there are numerous enterprises that finish issuing in Futu and immediately do brand marketing and marketing activities.

More than 400 new economy enterprises, such as NIO Inc. Automobile, XPeng Inc., Li Auto Inc., and Pinduoduo, the Big three of new energy vehicles, are long-term partners. Among them, XPeng Inc. chose Fudu from employee option management and IPO issuance before listing to IR management and brand marketing after listing.

Take the promotion cooperation between Futu and NIO Inc. as an example, the premise of the cooperation is that the user portraits are equally highly overlapped: mainly male groups, with an average age of 35-36 years old, and high customer net worth. The forms of cooperation between the two sides include online live broadcast, offline salon activities, joint favourite fans with Futu, stationing in Futu Enterprise, and so on.

In the United favourite event, the number of views of the event in the Futu station was as high as 2000wpm, and the conversion rate of test driving through the booking was as high as 46%. Futu is also the first investment platform for NIO Inc. 's NIO Day live broadcast cooperation. In 2021, NIO Inc. Automobile will also carry out more than 10 offline salon activities with Futu to bring professional services to users of both sides.

As Wu Biwei said, Futu's companionship to enterprises is not only the subscription amount, but also not only the moment of listing, but also a long-term companion who can provide IPO+PR+IR multiple values for new economy enterprises.

Talking about how to accompany Fortune for a long time, Wu Biwei believes that the core premise is that Fortune has gathered a large number of high-quality, active, highly sticky users of US stocks in Hong Kong.

Since 2020, the growth curve of the number of users, asset customers, daily active users and average daily UGC of Fortune has been extremely steep. At present, the latest registered users have exceeded 13 million +, the number of daily active users has exceeded 1 million, and the average number of daily UGC has reached 150000.

A high-quality user base is the key to Futu's ability to provide enterprises with a promotional solution that can kill many birds with one stone.The logic behind it is that by mining the IPO, PR, IR and other requirements of the enterprise at different stages, combined with the operation of C-end traffic and users, Futu realizes the linkage between the enterprise and the investor / target customer, and synchronously promotes the business growth of the enterprise when providing services such as enterprise value promotion and performance promotion.

Wu Biwei believes that it is Futu that has accumulated rich experience in operating position design, flow play and operation means in the actual combat of a large number of IPO new shares promotion. Only in this way can Futu be able to handle all kinds of promotion needs of enterprises.

The pomp of 2021 IPO continues, and dozens of Chinese stocks are on their way to IPO. Yang Ming, the head of operations of Futu, and his team did not relax even during the Spring Festival and were busy preparing to operate materials and coordinate operational resources. "IPO is a good start for enterprises in the financial market. if we want to stay with us for a long time, we must go all out." "

(note: the character Liu Kunda in the article is a pseudonym.)