IPO in Hong Kong
Companies intending to list in Hong Kong must submit listing application to HKEx. The process and rules for listing on the Hong Kong Main Board are set out in the "Main Board Listing Rules".
Hong Kong has a vibrant and well-regulated capital market, which provides access to a large pool of investors. Hong Kong is a major global financial hub and a gateway to mainland China.
FINANCIAL REQUIREMENTS
Companies must satisfy one of the below tests
MARKET CAP / PROFITS TEST
3-Year aggregate profit ≥ HK$50m (The profit for the first two years is HK$30 million, and the profit for the first year is HK$20 million)
Market cap ≥ HK$500m
MARKET CAP / REVENUE TEST
Latest year revenue ≥ HK$500m
Market cap ≥ HK$4bn
MARKET CAP / REVENUE / CASHFLOW TEST
Latest year revenue ≥ HK$500m
Market cap ≥ HK$2bn
Positive 3-year aggregate operating cash flow (OCF) ≥ HK$100m
Other Requirements
- Management has remained unchanged for the recent 3 years
- At least 3 independent non-executive directors who must account for at least one third of the board members
- A business record of not less than 3 fiscal years
- A controlling shareholder or director may conduct business in competition with the company but the business must be fully disclosed
- At least 300 shareholders
- The company cannot choose to be listed purely as a placing
- Open subscriptions must be fully underwritten
- No new shares can be issued within six months after the company's listing
- It is requested to submit financial reports every six months
The Minimum Public Float
Public float at the time of listing is not less than HK$125 million
The minimum public float is not less than 25%
If the market cap at the time of listing exceeds HK$10 billion, the minimum public float can be reduced to 15%
Shareholder’s Commitment
The shares will not be sold within the 6 months after the listed file is disclosed
Shares can be sold in the next 6 months but control must be retained
Ownership and control remain unchanged for the recent year
Companies intending to list on GEM Hong Kong must submit listing application to HKEx. The listing process and rules are set out in the "GEM Listing Rules".
Financial Requirements
No requirements for profitability Positive 2-year aggregate operating cash flow (OCF) ≥ HK$30m Market cap ≥ HK$150m
Other Requirements
Other Requirements
The minimum Public Float
The minimum Public Float
Shareholders' Commitment
Shareholders' Commitment