Can I use the stock funds sold that day to pay for new shares?

Yes, you can. Because there are many people and a lot of money to subscribe for new shares, but the number of shares issued is limited, it is impossible to have all of them, because the subscription is based on every 1000 shares.

Therefore, every 1000 shares is a subscription unit, and a subscription number will be obtained, and then a lottery number will be drawn. Investors will compare numbers, and some will win the lottery. If they don't do this, they won't win. Based on the issuable amount/total subscription amount, the winning rate of new share issuance is obtained. The lower the winning percentage, the less likely it is to win.

According to the rules of the exchange, the winning rate will be announced for the deferred materials. According to the general allocation number, the lead underwriter will preside over the lottery to confirm the lottery winning results, and the lottery winning results will be announced in the designated media on the first trading day (T+2) after the lottery. In China, each winning number can subscribe for 1000 shares (Shanghai Stock Exchange) or 500 shares (Shenzhen Stock Exchange).

In the issuance, shares are issued to investors at a fixed price through the exchange trading system in the form of capital subscription. Off-line placement refers to the placement of shares to the off-line inquiry object by cumulative bidding inquiry in the issuance. By comparing the online and offline winning rates of new shares, we can see that the highest winning rate of new shares can be increased by 12 times and the average winning rate can be increased by about 5 times through offline placement.

Baidu encyclopedia-winning new shares