A Hong Kong Initial Public offering has successfully established itself as an international financial center, it has a well-established common law system and the rules of law are upheld by an independent judiciary. They have good established regulations which protects the investors investments their interest and they give confidence for the foreign issuers as well. They also enjoy a balanced mix of institutional and retail investors this helps to attract or draw in various industries, which includes upstream, downstream, retail, ecommerce, internet, business, education, energy, financial services, etc.
Steps involved in Hong Kong Initial Public Offerings:
Pre-IPO diagnosis: The timeline is usually one year or before the target date, Pre-IPO diagnosis is very important to know about the eligibility criteria of the applicant. Initially they will assess the applicant’s business their financial conditions so that the management can assess the eligibility of the applicant. Through this Hong Kong initial public offerings process they will be able to find out the model of the business, regulations and land related matters, tax including the price.
Pre-IPO reorganization and investment: The timeline is one year or more before the listing date, it is transferring all the material rights, license and assets. It is used to securing financial resources from the private equity or the strategic investors. Special rights which are attached to the investments are not allowed to survive after the final listing.
Kick-off: Timeline is not less than six months before the listing date, in the Kick-off step they start fixing a table. Here they will identify the candidates of independent and non-executive directors. At least one of them must have appropriate professional qualifications or related management financial knowledge.
Preparation and verification: This timeline will continue till the listing date, reasonable enquiries will be conducted, and investigation related to the listing groups, controlling shareholders, and senior management.
A1/5A submission: This has to be done 80 days before the listing date and the listing application is submitted to the SEHK. The application will also include the completed draft and the other required forms.
Vetting process: This is done 70 days before the listing date and there is no pre-set timeline for the vetting process. The length or the time taken by the process depends highly on the quality of the listing applicants and also based on the complexity of the work.
Listing hearing: This step is done around 20 days before the listing date, the issues and concerns related to the listing application will be raised by the listing community.
Post- hearing: This step is done 14 days before the listing date, answering the remaining queries and board meeting is handled to approve the listing and relevant documents. The listing date and the post-listing is done at the end. LC Lawyers LLP provides comprehensive takeover Hong Kong and acquisition services to companies in Hong Kong and all over the globe and also they ensure smooth process.