Zakat on Money Blocked in an IPO Application

Short answer: While blocked, the money is still yours — it returns either as shares or as cash; ownership was never lost. So on your zakat day include the amount with your other wealth and pay 2.5%. Once shares are allotted, they follow your intention (trading/long-term) thereafter. Details: It resembles a fully collectible receivable (strong debt) from a solvent party — the issuer/bank is bound to refund. A short blocking period breaks neither ownership nor hawl — like money in cheque clearing. A refund changes nothing; an allotment merely converts money-type wealth from one form to another, the hawl continuing. Evidence: Quran 9:103; the athar of Uthman on reckoning receivables at zakat time (Muwatta, Zakat); Sahih al-Bukhari 1454; the Permanent Committee on strong debts and deposits. For complex individual cases, consult a qualified scholar.