Download the file → Consultation Paper

Highlights

• The Exchange proposes a new channel for specialised technology companies to list on HKEx

• The new rules will apply to companies in five specialized technology sectors: next-generation information technology; advanced hardware; advanced materials; new energy and energy conservation and environmental protection; and new food and agricultural technologies

• The Exchange seeks market views for two months

Key recommendations of the consultation paper

Listing Qualification

Commercialization Revenue Threshold: A commercialized company is defined as a company with a revenue of at least HK$250 million from its specialized technology business in the most recent audited fiscal year

Expected minimum market capitalization at listing: HK$8 billion (commercialized company) or HK$15 billion (uncommercialized company)

R&D: All applicants must have engaged in R&D for at least three fiscal years prior to listing, and the R&D investment must account for at least 15% (commercialized companies) or 50% (non-commercialized companies) of the total operating expenses

Minimum third-party investment:

Listing applicants must receive substantial investment from sophisticated independent investors. As an indicative benchmark, applicants who meet the following requirements will generally be considered to have met these requirements:have received substantial investment from at least two "Pioneer" senior independent investors at least 12 months prior to the date of the listing application; and

The aggregate investment amount from all sophisticated independent investors reaches the required minimum percentage of the listing applicant's issued share capital at the time of listing, i.e. 10% to 20% (commercialized companies) or 15% to 25% (uncommercialized companies), Depends on the expected market value of the listing applicant at the time of listing

Commercialization path

Uncommercialized companies must demonstrate and disclose in their listing documents a credible path to achieving the threshold of commercialization gains

Requirements for initial public offerings

More efficient market pricing process

Free float of at least HK$600 million after listing

Information to be disclosed includes pre-IPO investments, commercialization status and prospects, and appropriate cautionary statements

Post-IPO Regulations

Restrictions on the post-IPO lock-up period for controlling shareholders, key persons and senior independent investors of Vanguard

Imposing additional continuing obligations on uncommercialized companies, including additional disclosure in interim and annual reports of the issuer's progress towards meeting the commercialization yield threshold, and disclosure of updates to any business and financial estimates set out in the listing document