Requirement And Procedure Of Ipo China

Requirement and procedure of ipo china

Requirement for Mainboard IPO

Companies intending to list in Hong Kong must submit listing application to HKEx.

Requirement and procedure of ipo china

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

Recognized Jurisdiction

  • Austria
  • Australia
  • Bermuda
  • Brazil
  • British Virgin Islands
  • Canada
  • Cayman Islands
  • China
  • Cyprus
  • England
  • France
  • Germany
  • Guernsey
  • Hong Kong
  • India
  • Isle of Man
  • Israel
  • Italy
  • Japan
  • Jersey
  • Korea
  • Labuan
  • Luxembourg
  • Netherlands
  • Russia
  • Singapore
  • United States of America

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Initial Public Offering (IPO) Process