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The Stock Exchange of Hong Kong, a unit of Hong Kong Exchanges and Clearing (HKEX), has made it easier for tech firms to go public.
The changes include lowering the required market capitalization for listing on the Hong Kong Main Board to HK$6 billion (a hair below US$765 million) from around HK$8 billion (around US$1.02 billion) in an original proposal.
The requirement applies to commercial companies – specialist firms involved in R&D and the commercialization of tech like AI and computer chips – with revenue worth at least US$31.8 million in their most recent financial year reports.
“The new economy sector is rapidly changing the way in which we live and work, and this new route to market will support some of the most innovative and progressive companies of the future,” Nicolas Aguzin, HKEX’s chief executive officer, said in a statement.
Meanwhile, for pre-commercial companies, the minimum market cap was set at US$1.27 billion, down from US$1.91 billion. Pre-commercial firms are those that don’t meet the required US$31.8 million in revenue.
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The new rules were formed after the exchange combed through 90 responses during a consultation process from relevant stakeholders. However, HKEX made “some adjustments” to account for market feedback, said Katherine Ng, head of listing.
Currency converted from Hong Kong dollar to US dollar: US$1 = HK$7.85.
Editing by Eileen C. Ang
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