Overview

The Hong Kong Stock Exchange last week issued interim guidance on pre-IPO investments, focusing on the time by which such investments would need to be made in order to be acceptable to the Exchange.

The guidance states that the Exchange will generally require, except in very exceptional circumstances, that pre-IPO investments on terms which are more favourable than that which will be available to investors at IPO, to be completed either (a) at least 28 clear days prior to the filing date of the first A1 listing application form or (b) 180 clear days before the first trading day of the new applicant's securities.

This bulletin provides a summary of the guidance and its implications for new listing applicants.


CONTENTS

• The new timing requirements
• Exceptional circumstances to be considered on a case-by-case basis
• Early consultation with the Exchange encouraged
• Background to the interim guidance
• Consultation pending