HK Mainboard IPO or Secondary listing
Requirements for HK Mainboard IPO or secondary Listing
HK mainboard IPO or secondary listing are channels to invest in China unicorns and also for those Unicorns to enter to global.
HK mainboard IPO or secondary listing Market for more established companies.
Financial Requirements
Companies must satisfy one of the below tests
Profit test:
- Market capitalisation at the time of listing should be more than HK$500 million
- Profit attributable to shareholders of the most recent year is more than HK$20 million
- Profit attributable to shareholders of the two preceding years is more than HK$30 million
Market Cap / Revenue test:
- Market capitalisation at the time of listing should be more than HK$4 billion
- Revenue of the most recent audited year more than HK$500 million
Market Cap / Revenue /
Cashflow test:
- Market cap more than HK$2 billion
- Revenue of the most recent audited year more than HK$500 million
- Aggregate positive cash flow from operating activities for 3 preceding financial years more than HK$100 million
Other Requirements
- The minimum public float value at the time of listing of HK$125 million or not less than 25%
- If the market cap at the time of listing exceeds HK$10 billion, the minimum public float is 15%
- Management continuity for at least 3 preceding years
- At least 3 independent non-executive directors and they must account for at least one third of the board members
- Not less than 3 fiscal years business record
- Have at least 300 shareholders
- The company cannot be listed purely as a placing
- Open subscriptions must be fully underwritten
- The company cannot issued new shares within six months after the company's listing
- Financial information has to be prepared in accordance with Hong Kong Financial Reporting Standards, International Financial Standards or China Accounting Standards for Business Enterprises
Shareholders' Commitment
- The shares will not be sold within six months after the listed file is disclosed
- Shares can be sold in the next six months but control must be retained
- Ownership and control remain unchanged for the recent year