Global Markets
Home›Global Markets›Asia›HKEX cuts listing thresholds and allows confidential I…
HKEX cuts listing thresholds and allows confidential IPO filings
HKEX said it will also lower market-cap requirements for weighted voting right companies to HK$20.0 billion from HK$40.0 billion.
Hong Kong Exchanges and Clearing will make changes to its listing rules that are designed to attract more start-ups and international firms to list in Hong Kong, the South China Morning Post Economy unit reported.
HKEX will allow all listing applications to remain confidential, and it will reduce market-capitalisation requirements immediately for companies using different listing routes, including start-ups and firms pursuing weighted voting rights. For weighted voting right companies, HKEX will cut the market-cap threshold to HK$20 billion, from HK$40 billion, and it will lower the revenue-test thresholds to HK$6 billion in market capitalisation and HK$600 million in the most recent financial year.
The exchange will also reduce requirements for companies using a revenue test, and it will lower the market-cap requirement for overseas-listed innovative companies launching secondary listings in Hong Kong to HK$6 billion from HK$10 billion. HKEX received 73 responses to its consultation from March to May, and it said most respondents supported the reductions.
HKEX said the reforms, announced on Friday, align with the thresholds used in Shanghai and Shenzhen and are intended to increase the number of innovative companies from around the world pursuing listings in Hong Kong, SCMP Economy reported.