Hong Kong has launched a dedicated channel to assist firms from prospective specialist technologies and biotech in going public, as well as to allow them to make a confidential filing, as the city aims to attract high-quality companies to increase its competitiveness.
The launch was jointly announced by the Securities and Futures Commission and Hong Kong Exchanges and Clearing (0388) on Tuesday, following the the government’s mention of the channel in February.
The Technology Enterprises Channel, or TECH, will provide early and tailored guidance for specialist technology companies and biotech firms, helping them address key matters at a preparatory stage and navigate regulatory requirements with greater clarity and confidence, which would assist their initial public offerings more efficiently, HKEX head of listing Katherine Ng Kit-shuen said.
For confidential filing, HKEX explained that specialist technology companies and biotech firms are usually in their early stage or have yet to commercialize their products, and the disclosures in their listing plans may pose heightened and disproportionate risks compared to other industries.
Currently, all IPO prospectuses will be uploaded to a website of HKEX after submitting the applications.
Besides TECH, the new confidential filing option aims to strengthen Hong Kong’s position as a premier listing platform for emerging and innovative companies, showcasing the SFC’s commitment to facilitating the development of the listing market and ensuring the listing regime is adaptable and flexible to the changing dynamics in global markets, said Michael Duignan, executive director of corporate finance at the commission.
In addition, HKEX has updated the Guide for New Listing Applicants that these companies are presumed to have satisfied the Innovative Company Requirements and the external validation requirement for listing with a weighted voting rights structure under Main Board Chapter 8A.
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