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”.

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%

SHAREHOLDERS’ 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”.