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Listing in Hong Kong

Startupr
09 May, 2016

The process by which a Hong Kong private company becomes a listed company may differ from other countries.

The significance of becoming a listed company is that as a listed company you can raise funds by offering securities to the public (private company cannot).


Listing process involves:

  • The private company is required to appoint a sponsor which is usually a financial institution registered with the Securities and Future Commission. The sponsor advises the company and manage the initial public offer of shares.
  • The company must submit an application proof which is a listing application and related materials.
  • The company must appoint the sponsor at least two months before listing application is made.
  • The company must also appoint other professionals such as accountants and solicitors.
  • If necessary, the group of companies that will form the listed company can be restructured.
  • Due Diligence - All information in the listing application must be examined and investigated to ensure correctness and completeness before issued to public (business transactions, assets etc.)
  • The company submits the application to the Stock Exchange for the shares of the company to be listed on the Main Board of the Stock Exchange of Hong Kong (HKEx) or Growth Enterprise Market (GEM).
  • The company makes an offer to public to subscribe for shares in the company.
  • The shares of the company are listed on the Stock Exchange.


The Stock Exchange in Hong Kong (HKEx)

The Stock Exchange in Hong Kong was formed in 1980 by the unification of four exchanges and commenced the trading in April 1986.  It has developed from largely domestic operations to a major international stock exchange.
The Stock Exchange in Hong Kong regulates the conduct of companies listed therein.


Listing on the HKEx

The HKEx considers the following factors:

  • Size of the company
  • Market position of the company and its relative stability
  • Integrity of management and controlling shareholders
  • Material conflicts and conflicts of interest

The listing process and requirements for listing are describer above.



About the Author


Startupr

Startupr puts you first. This is why our main focus is Startups with global ambitions. We give you the freedom to build your business while we take care of the tedious, administrative tasks, leaving you to concentrate on your dream for your company. As part of our brilliant service, our back end software will automatically send you reminders of important annual filings, and upload your important document to your online account. startupr.hk

 

 

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