A company is going public. You want to invest. What happens next?
An IPO (Initial Public Offering) is when a company offers its shares to the public for the first time.
Unlike buying shares already trading on the stock exchange, participating in an IPO means requesting shares before trading begins.
Here's how the IPO subscription process works on Thndr, from announcement to allocation and trading on the Egyptian Exchange (EGX).
Step 1: A Company Announces its IPO
If you'd like to learn more about IPO fundamentals, including what it means to be oversubscribed, free float, or have a stabilization fund, see Understanding IPOs.
Step 1: A Company Announces its IPO
What is an IPO announcement?
An IPO announcement provides information about an upcoming share offering.
It typically includes:
Number of shares: How many shares are being offered to investors.
Offer price: How much each share will cost, or the expected price range.
Subscription period: The dates during which investors can submit requests to buy shares.
Expected listing date: When the shares are expected to start trading on the stock exchange.
Some details, including the final offer price or trading date, may be confirmed later.
An IPO announcement doesn't mean you can buy shares immediately. You can submit your request once the subscription period opens.
Step 2: Go to the IPO stock page on Thndr
Where can I find the IPO?
When an IPO is available on Thndr, you can find it in two ways:
From the Home page: Tap the IPO feature card.
From Search: Tap the search icon in the navigation bar and search for the company by name or ticker.
Both will take you to the IPO page, where you can review the offering details.
Where can I find the subscription dates?
The subscription period is the limited window of time when investors can place orders requesting shares in an IPO.
Open the IPO page and scroll to IPO Milestone under the Details tab. Here, you'll find when the subscription period starts and ends.
You may see two types of subscriptions:
Public subscription: Open to individual investors like you through Thndr.
Private subscription: Reserved for institutional and other eligible investors under the terms set out in the IPO prospectus. Private subscription is not always available through Thndr.
Public and private subscription periods may have different start and end dates. If you're subscribing through Thndr, check the public subscription dates.
Step 3: Request your IPO shares
How do I subscribe to the IPO?
To subscribe to an IPO on thndr:
Open the IPO page during the subscription period.
Tap Subscribe.
Enter how many shares you want.
Review your order details and submit your request.
Remember: Subscribing means requesting shares, not buying them immediately. You'll find out how many shares you've received after the subscription period closes and allocation is completed.
Example
A company is offering shares at EGP 20 each.
You request 100 shares.
Your total IPO order value is EGP 2,000.
However, requesting 100 shares doesn't guarantee that you'll receive all 100 if the IPO is oversubscribed.
Can I make multiple IPO orders?
Investors can place multiple orders in the same IPO when multiple orders are supported for that offering.
Multiple orders do not guarantee full allocation. Final allocation still depends on investor demand, available shares, and the allocation rules announced for the IPO.
How much can I request in an IPO?
Thndr lets you request IPO shares worth up to 4 times your available wallet balance.
This increases your IPO ordering power, allowing you to request more shares and improving your chances of receiving an allocation closer to what you want if the IPO is oversubscribed.
How much money from my wallet will be blocked for my IPO request?
When you place an IPO order, 25% of the amount you request is blocked from your Thndr wallet. This is called blocking funds.
Blocked funds are still yours, but you cannot use them for other purchases or withdrawals while they're reserved.
Example
Say you're subscribing to an IPO where each share costs EGP 20.
You request 100 shares.
Your total IPO order is EGP 2,000.
Thndr blocks 25% of your order, which is EGP 500.
The remaining EGP 1,500 isn't collected yet.
How does the 4x IPO ordering power affect blocked funds?
The amount blocked is always 25% of your actual IPO request, whether you use the full 4x ordering power or request a smaller amount.
Example
If you have EGP 100 in your wallet, you can request up to EGP 400 worth of IPO shares.
IPO request | Amount blocked (25%) |
EGP 100 | EGP 25 |
EGP 200 | EGP 50 |
EGP 300 | EGP 75 |
EGP 400 | EGP 100 |
How long will my IPO funds be blocked?
Your money stays blocked until your IPO order is processed after the subscription period closes, or until you cancel your order.
You can cancel your IPO order until 2:30 PM on the last day of the subscription period.
Once your shares are allocated, the blocked amount goes toward your purchase. Any excess money is released back to your wallet within 5 working days of subscription close.
Step 4: Your IPO order is submitted and appears as Pending
Why is my IPO order showing as Pending?
Once you submit your IPO order, its status will appear as Pending. It means your request has been submitted, but you haven't received your shares yet. Your order will remain pending until the subscription period closes and the allocation process is completed.
Your IPO order remains Pending because:
The subscription period is still open. Investors are still placing their requests.
Shares haven't been allocated yet. You'll find out how many shares you're receiving after the subscription period closes.
Remember: A Pending IPO order doesn't mean something is wrong. It means you're waiting for the allocation process to be completed.
Can I cancel my IPO order while it's Pending?
You can cancel your IPO order until 2:30 PM on the last day of the subscription period.
If you cancel before the deadline, the money blocked for your IPO request will be released back to your Thndr wallet.
Once the cancellation deadline passes at 2:30 PM on the last day of the subscription period, you can no longer cancel your IPO request.
Step 5: Allocation —You find out how many shares you're getting
What is IPO allocation?
Allocation is the process of deciding how many shares each investor receives after the subscription period closes.
Your final allocation depends on:
The number of shares available. Each IPO offers a limited number of shares to investors.
The total number of shares requested. If investors request more shares than are available (oversubscription), there may not be enough for everyone. If demand is lower than the number of shares available (undersubscription), investors may receive their full requested amount.
The IPO's allocation rules. Each IPO has rules for how shares are distributed, particularly when demand exceeds supply.
You may receive all, some, or none of the shares you requested. Pro rata allocation means shares are distributed proportionally based on how many shares each investor requested.
When will I know how many IPO shares I received?
You find out your final allocation after the subscription period closes and the allocation process is completed.
On Thndr, IPO order execution is completed within five working days after subscription closes, although timing may vary by offering.
You'll receive an in-app update when your allocation is processed.
What does IPO oversubscription mean?
An IPO is oversubscribed when investors request more shares than are available.
For example, if a company offers 1 million shares, but investors request 10 million shares, the IPO is 10 times oversubscribed. There aren't enough shares to fulfill everyone's requests.
How are shares allocated when an IPO is oversubscribed?
One common method is pro rata allocation, where investors receive the same percentage of the shares they requested.
Example
A company offers 1 million shares, but investors request 10 million shares.
This means the IPO is 10 times oversubscribed because demand is 10 times greater than the number of shares available.
If the IPO uses pro rata allocation, each investor would receive approximately 10% of the shares they requested.
Shares requested | Shares allocated (10%) |
100 shares | 10 shares |
500 shares | 50 shares |
1,000 shares | 100 shares |
If you requested 100 shares at EGP 20 each:
Your original request was worth EGP 2,000.
You receive 10 shares instead of 100.
Your final purchase costs EGP 200.
Remember. Being 10 times oversubscribed doesn't automatically mean every investor receives exactly 10% of their order. The final distribution follows the IPO's allocation rules.
What happens to my blocked money after IPO allocation?
After the subscription period closes, you'll find out how many shares you've received. This is called allocation.
If your allocated IPO shares cost less than the blocked amount, you get the difference back.
If your allocated IPO shares cost more than the blocked amount, you'll need to pay the difference.
You only pay for the shares you actually receive, not all the shares you originally requested.
Any excess blocked funds are released back to your Thndr wallet when your IPO order is executed, which typically takes up to 5 working days after the subscription period closes.
Example
You place an IPO order for 100 shares at EGP 20 each, worth a total of EGP 2,000.
When you submit your order, EGP 500 (25%) is blocked from your wallet.
After allocation, here's what could happen:
| You receive less than blocked amount: 10 shares | You receive more than blocked amount: 30 shares |
Cost of your shares | EGP 200 | EGP 600 |
Money already blocked | EGP 500 | EGP 500 |
What happens next | EGP 300 is released to your wallet | You need to pay another EGP 100 |
Step 6: Your IPO shares become available to trade
When can I trade my IPO shares?
Once your IPO shares are allocated, the purchase is completed, and trading begins on the Egyptian Exchange (EGX). You can trade your shares through Thndr.
The subscription closing date and the first trading date are not the same. The stock exchange announces when trading will begin.
Can an IPO share price go up or down?
Yes. Once trading begins, the share price can rise or fall depending on market demand and supply.
Example
You received 10 shares at an IPO price of EGP 20 each.
Your original investment is EGP 200.
If the share price rises to EGP 25: Your shares are worth EGP 250.
If the share price falls to EGP 15: Your shares are worth EGP 150.
These are illustrative values before any applicable fees.
You can choose to hold your shares or sell them once trading starts.
Remember: Subscribing to an IPO doesn't guarantee that the share price will rise after listing.
What happens to an IPO share price when trading starts?
Once trading begins on the Egyptian Exchange (EGX), the share price can rise or fall depending on market supply and demand.
Example
You received 10 shares at an IPO price of EGP 20 each.
Your original investment is EGP 200.
If the share price rises to EGP 25: Your shares are worth EGP 250.
If the share price falls to EGP 15: Your shares are worth EGP 150.
You can choose to hold your shares or sell them once trading starts.
What happens if the share price falls below the IPO price after trading starts?
Once trading starts, if a company's share price falls below its IPO price, your shares will be worth less than what you originally paid for them.
However, some IPOs include a stabilization fund, which gives eligible investors the option to sell the shares they received in the IPO at their original purchase price for a limited period.
What is an IPO stabilization fund?
Some IPOs include a stabilization fund, which gives eligible investors a temporary option to sell the shares they received through the IPO at their original offer price.
Example
You received 10 IPO shares at EGP 20 each.
Trading begins, and the market price falls to EGP 17.
If the IPO includes an applicable stabilization mechanism, you may be able to sell those eligible IPO shares at the original EGP 20 offer price during the specified period, rather than selling them on the market at EGP 17.
How long does an IPO stabilization fund last?
The stabilization period is typically the first 30 days after trading begins, but the exact deadline is set out in the specific IPO's terms.
Does every IPO have a stabilization fund?
Not every IPO includes a stabilization fund. When one is available, its terms and conditions may vary. Here's what to check:
Availability: Does this IPO include a stabilization fund?
Eligibility: Which shares and investors qualify? Stabilization generally applies to public-offering shares, not private-offering share.
Your IPO recap: What to keep in mind
Every IPO is different. Before placing an order, make sure you understand the offering details and what happens after you subscribe.
Here's a quick recap of what matters:
Offer price: How much each share costs.
Subscription period: When you can submit your IPO request.
Subscription limits: The minimum and maximum amount you can request.
Public and private offerings: Who can participate and which rules apply.
Allocation: How shares will be distributed if demand exceeds supply.
Blocked funds: How much of your wallet balance is reserved and when any excess will be released.
Listing date: When the shares are expected to start trading.
Stabilization fund: Whether eligible investors can sell at the IPO price for a limited period if the market price falls.
You can find the specific offering details and the IPO prospectus on the IPO stock page in Thndr.
Your IPO journey at a glance
The IPO subscription period opens and investors can place buy orders.
Investors submit their IPO subscription requests during the subscription window.
After the subscription period closes, the offering is reviewed and shares are allocated according to the announced allocation rules.
Investors are notified of the final allocation results.
Allocated shares are credited to investor accounts once the IPO is completed.