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On 10 March 2017, The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) published revised versions of its three sets of guidance letters on pre-IPO investments, namely, GL29-12 (Interim Guidance on Pre-IPO Investments), GL43-12 (Guidance on Pre-IPO Investments) and GL44-12 (Guidance on Pre-IPO Investments in convertible instruments) (collectively, the “Pre-IPO Investment Guidance”).
According to the Stock Exchange, the revisions were made after a holistic review of its treatment of pre-IPO investments in view of market feedback and developments with the aim of streamlining and clarifying the requirements.
The major changes are highlighted below:
Clarification of the ambit of the Pre-IPO Investment Guidance
– shares of the applicant acquired in an exchange of shares of a company operating the applicant’s business prior to the formation of the applicant or an operating subsidiary of the applicant or otherwise as part of a corporate restructuring of the applicant in connection with the listing; or
– shares awarded to directors or employees of the applicant as part of a defined share award scheme.
28 Day/180 Day Requirement → 28 Day/120 Day Requirement
Treatment of Divestments
Treatment of Special Rights
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