IPOs through electronic share application (ESA).. my misadventure.

As I have been preparing since July 2010 to apply for the well touted Petronas IPOs first of which is MMHE now referred to as MHB in October, I cleared my loss-making plantation counters and put all the proceeds into my regular bank account getting ready to perform the application through ESA facility at my bank. You see though I have an account with CIMB, the bulk of my income is channelled to HSBC which does not have an online share purchase facility. So I depend on ESA.

As soon as the IPO application opened on 6 October, I diligently went to my bank and applied. My mistake was I did not really check properly the slip coming out from ATM machine. All I saw that a record of the amount commensurate with the offer price of 3.60 was printed. When I checked online my networth two days later, I noticed that the amount had not been subtracted from my bank account. I made another mistake of emailing my query on this to my banker instead of texting her. She failed to reply my question and I went off yet another trip with my husband. The offer period ended on 15 October and some days later my relative informed me that her IPO share application through Maybank facility had been 60% successful and when I checked with MIH then I knew my application has never been received.

I went to my bank after my trip on the following Monday only to find out that on my slip, though the amount paid for the number of shares had been printed, the bottom line showed the word "NULL" which I failed to notice as it was in the evening when I performed the transaction. My bank account was healthy, no problem with it and I have never changed my account number, now what was blinking wrong? And I was riled up. The banker was as bewildered till she rang up her Headquarters.... now have I changed my ATM card? As apparently the card is linked to your CDS account. If you changed to a new card due to loss etc, you need to re register and link the new ATM card to the CDS account again!

Now, it has been a long time since I used my ATM card to perform ESA. The last one was AirAsia.... in 2007? Yes I misplaced my ATM card since then and had got a new one.... there, that was the reason for my failure to capitalise on MHB IPO... what a blunder. My relative made a cool 6000.00 and I made air! And as if it was not enough upset for us, my husband also performed an ESA when he was in the capital city and he inadvertently used his credit card which is not linked to his CDS account so he also missed being balloted for the shares. So we looked at each other and just shook our heads...

So ESA is not without its pitfalls. The system is dumb as it does not automatically  link the CDS account to the new ATM card and bank account instead it uses a third party way of doing thing much to the distress of the unfortunate investors like us. The bank also fails to establish an SOP to deal with this situation so that their customers do not suffer from this kind of loss through no fault of their own.


Alternatively just transfer your money to CIMB or Maybank whenever you want to perform this application as they have an online facility to do this. I am disappointed with my bank. I find it hard to "divorce" it as I have been with the bank for many years.... talking about being sentimental.

I re registered my ATM card on the same day and it is valid only after three days. I applied for Petronas Chemical IPO on 01 Nov and this time it was  successful as immediately I saw the amount was taken from my account. So here we go, Pchem is going to be listed tentatively on 26 November 2010 ... I need all the luck in the world!