The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), today publishes guidance materials to enhance the transparency of its initial public offering (IPO) application process.
These materials are part of an ongoing effort to streamline the listing application process, an effort kick-started by the publication in June this year of the Consultation Paper on Proposed Changes to Filing and Checklist Requirements for Listing of Equity Securities.
Discussions with market participants leading to the public consultation revealed a number of them wished to see guidance over a broad range of subjects. In response, the Exchange has compiled these guidance materials.
“We will continue to listen to market participants and consider streamlining measures that are in line with the principle of market quality,” said HKEx’s Head of Listing, Mark Dickens.
The guidance materials are:
- Guidance letter GL07-09: documentary requirements on (a) re-filing of a listing application within and after three months of the lapse of the original application; and/or (b) where there is a change of sponsor(s).
Guidance letter GL08-09: use of cautionary language when presenting different types of quoted statistics and data in prospectuses.
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- Guidance letters GL09-09 to GL11-09: common waiver conditions relating to requirements on:
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- Listing decision series 68: case report on a waiver of the post-IPO fund raising prohibition in the case of an issuer seeking a dual primary listing.
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- Listing decision series 69: case report on how an issuer should demonstrate financial independence and under what circumstances shareholders’ guarantees are allowed to continue after listing.
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- Listing decision series 70: case report on the Exchange’s acceptance of Singapore accounting standards for preparation of an accountants’ report and other financial statements and related matters.
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- Online routine comments: at present the Exchange includes a number of routine comments in its first comment letters to sponsors. Going forward, it will post these routine comments on the HKEx website and thee-Submission System to enable applicants and sponsors to prepare their responses more efficiently (see details below).
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The Exchange plans to publish guidance materials on subjects of common interest regularly.