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Hong Kong Stock Exchange proposes a reform of the IPO price discovery process and open market requirements 

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On 19 December 2024, The Stock Exchange of Hong Kong Limited (Exchange) published a consultation paper seeking market feedback on proposals to reform its regulatory framework relating to the IPO price discovery process and open market requirements, with a view to:

  • increasing the participation of “price setting” investors, thereby reducing the likelihood of the final offer price being set at a large disparity to the actual trading price when dealings in those shares commence; and
  • ensuring issuers will have sufficient shares in public hands that are available for trading at listing, whilst relaxing certain percentage thresholds which would imply a bar that may be too high in absolute dollar value.

The key proposals are summarised below.

IPO offering and pricing mechanism

Open market requirements

The consultation period will end on 19 March 2025.

Key Contacts

Ronny Chow

Partner | Corporate Finance

Email or call +852 2825 9435

Alexander Que (Alex)

Partner | Corporate Finance

Email or call +852 2825 9770

Rhoda Yung

Partner | Corporate Finance

Email or call +852 2825 9624

Gary Wong

Partner | Corporate Finance

Email or call +852 2825 9798

Maynard Leung

Partner | Corporate Finance

Email or call +852 2825 9415

Canny Lau

Partner | Corporate Finance

Email or call +852 2826 5346

Related Services and Sectors:

Capital Markets, Equity

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