Hong Kong to offer ‘tailored guidance’ for specialist tech firms seeking IPOs Hong Kong’s market watchdog and stock exchange operator have set up a special communication channel and a new confidential filing option to help technology and biotech companies prepare listing applications amid a rush of first-time share offerings in the city. The Technology Enterprises Channel, which was announced by the Securities and Futures Commission (SFC) and Hong Kong Exchange & Clearing (HKEX) on Tuesday, aims to assist emerging and innovative companies in raising funds, as outlined in Financial Secretary Paul Chan Mo-po’s budget speech in February. The special channel will provide “early and tailored guidance” for prospective companies, “helping them address key matters at a preparatory stage and navigate regulatory requirements with greater clarity and confidence, thereby facilitating a more efficient pathway to successful listing in Hong Kong”, said Katherine Ng, the head of listing at HKEX. The exchange will permit biotech and specialist technology companies – in the hi-tech, advanced hardware and software, new materials, new energy and food and agriculture technologies industries – to submit their application filings confidentially. This option is available immediately. The move will build on the rapidly growing initial public offerings (IPO) pipeline in Hong Kong driven by improved valuations and liquidity. Surging capital inflows ahead of some coming mega listings forced the city’s de facto central bank step in to weaken the local currency. IPOs in the city could raise between US$17 billion and US$20 billion this year, up from last year’s US$11 billion, Chan said in March. Companies in the hi-tech and biotech sectors have boosted Hong Kong’s IPO pipeline this year, with analysts noting that they have the potential to attract investor interest, spurred by the “DeepSeek moment” that fuelled a rally in Chinese tech stocks. The new channel comes after the HKEX’s introduction of a listing regime, Chapter 18C, in 2023, to speed up the IPOs of specialist tech firms that have yet to post a profit. Last September, the HKEX granted a three-year relief that lowers the market-valuation bar for pre-revenue firms to HK$8 billion (US$1.02 billion) from HK$10 billion, while those with HK$250 million in annual revenue, the valuation has been lowered to HK$4 billion from HK$6 billion. Another listing rule, Chapter 18A, applies to unprofitable biotech companies with a market capitalisation of HK$1.5 billion. More than 60 companies have listed under Chapter 18A since its launch in 2018. Meanwhile, the latest announcement also allows potential companies meeting the requirements under Chapter 18A and Chapter 18C to seek listings with a weighted voting rights structure, which deviates from the “one-share, one vote” principle. These companies will be presumed to have satisfied the innovative company and the external validation requirements for listing with such a structure. The stock exchange views the structure helpful to fulfil certain needs of emerging and innovative applicants. Hong Kong is keen to leverage its international financial centre status to create more growth areas for the city amid the ongoing trade war. “We will leverage the ‘one country, two systems’ and our international characteristics to develop Hong Kong into an international exchange and cooperation hub for the AI industry,” Chan said in his budget speech as he unveiled the technology channel as part of a plan to develop the AI industry. Chan also highlighted Hong Kong’s role as a free port, implementing free-trade policies and ensuring the free flow of capital, goods, people and information at the annual meeting of the Asian Development Bank (ADB) on Monday in Milan, Italy. He emphasised the need for member countries of the supranational bank to strengthen cooperation due to disruptions caused by unilateralism and protectionism to the global economy and trade order. Hong Kong would support the ADB’s agenda, which focuses on addressing climate change, developing the private sector, advancing regional cooperation and digital transformation, Chan said. https://www.scmp.com/business/markets/article/3309282/hong-kong-offer-tailored-guidance-specialist-tech-firms-seeking-ipos (ICE HONG KONG)

Fonte notizia: South China Morning Post