Table of Contents
How do I get an IPO in Hong Kong?
Listing and IPOs in Hong Kong are generally carried out in three steps which are the initial preparation, regulatory vetting and marketing, and offering. Once the decision to go public is made, you should be aware of the key figures necessary to carry on the process.
How can I get listed in Hong Kong?
Main Board Listing requires the review of three years’ of financial track record and the fulfilment of any one of the following tests:
- Profit test: Market capitalisation at the time of listing more than HK$500m.
- Market Cap / Revenue test:
- Market Cap / Revenue / Cashflow test:
What is the minimum lot size for Hong Kong Stock Exchange?
1 lot
The minimum trading unit for HK stocks is “1 lot”, which may equal to 100 shares, 500 shares, 1,000 shares, 2,000 shares, etc., depending on stock price.
How long is Hong Kong IPO?
The IPO process: Steps, timing and parties and market practice
| Steps | Typical timeline |
|---|---|
| Vetting process | 70 days before the Listing Date |
| Listing hearing | Generally around 20 days before the Listing Date |
| Post-hearing | 14 days before the Listing Date |
| Prospectus registration | At least one day before the date of prospectus |
How do you qualify for an IPO?
Eligibility Criteria for IPO Application As Mandated By SEBI
- The company should have at least Rs 3 crore in net tangible assets in each of the previous three years.
- The company should have a net worth of at least one crore rupees in each of the previous three years.
What is IPO vetting?
IPO Vetting is responsible for processing applications for new equity listings, including transactions by listed companies deemed to be new listings. It also handles pre-IPO enquiries before filing of listing applications. In addition, it issues guidance to the market and formulates IPO policies.
Can I trade Hong Kong stocks?
Yes, as a U.S. investor, you can trade Hong Kong stocks. It is possible to gain exposure to Hong Kong stocks through exchange traded funds (ETFs), though you do not own the stocks outright. Conversely, you may purchase American depository receipts (ADRs) of Hong Kong companies trading on U.S. exchanges or OTC markets.
Can I buy Hong Kong stocks in Singapore?
More importantly for non-Chinese investors, H-shares can be freely traded without any restrictions. For Singapore investors, investing in Hong Kong shares isn’t too different from investing in the SGX.
Can anybody buy an IPO?
An initial public offering, or IPO, is the first time that shares of a company are offered for sale to the public. Once an IPO occurs, company stock is listed on a stock exchange and is available for pretty much anyone to buy.
Who can buy IPO before it goes public?
Meet eligibility requirements. You may need to have a certain amount in assets with the broker or be considered an active trader. At TD Ameritrade, you need to have at least $250,000 in your account or have traded at least 30 times in the past three months, among other requirements.
What is required for a company to go public?
Requirements for Listing The company has predictable and consistent revenue. Public markets do not like it when a company misses earnings or has trouble predicting what they will be. The business needs to be mature enough that it can reliably predict the next quarter and the next year’s expected earnings.
How long does it take to go public after filing S 1?
It can last between two weeks and three months, depending on the company and its advisors. If handled properly, it should take an average company between six and nine months to go public via an initial public offering (IPO) or direct public offering (DPO) – if it is coordinated and managed properly.
How do you list a company?
NSE (National Stock Exchange) Listing Process
- Company must be registered as a Public Company under Companies Act 1956 or Companies Act 2013.
- Company should be at least 3 years old and 2 years should be positive net worth.
- Post issue paid-up capital should not be more than 25 Cr.
- Documents requirement for NSE Listing.
How do I buy Hong Kong stock?
Investors can also trade Hong Kong stocks by opening an account with a brokerage firm that offers an international trading platform.
- Trading on the Hong Kong Stock Exchange.
- Exchange-Traded Funds (ETFs)
- American Depository Receipts.
- Invest Directly Through a Broker in Your Country.
Can I buy HK stock in UK?
There are two ways you can get exposure to Hong Kong stocks – you can either invest in them directly via our share dealing service – if they have a dual listing on a US stock exchange, or you can trade them using derivatives such as spread bets or CFDs.
Can foreigners trade Hong Kong stocks?
Foreign companies must register with the U.S. Securities and Exchange Commission (SEC) to be offered as ADRs. Brokerage firms that offer international access generally offer many international exchanges, including Hong Kong’s. Make sure to research brokers thoroughly before trading with them.
How can I buy Hong Kong stocks?
How to Buy Stocks in Hong Kong
- Open a Trading Account. To trade in any financial market, you need to open a trading account with a reputable broker, whether you’re based in Hong Kong or elsewhere.
- Fund a Trading Account.
- Get a Trading Platform.
- Buy Hong Kong Stock.
What are the rules and regulations for IPOs in Hong Kong?
Key rules and regulations applicable to the IPO process in Hong Kong. The major laws and regulations governing the listing process in Hong Kong include the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), the Securities and Futures Ordinance (Cap. 571), and the Listing Rules.
Who are the key figures during an IPO in Hong Kong?
Key figures during an IPO in Hong Kong include: Your company, also known as the listing applicant: Your company will be providing assistance to all the parties involved in better understanding the business you have created and your strategy. You will also be helping all parties involved when the time for due diligence comes.
What are the minimum requirements to List A Company in Hong Kong?
Latest three years aggregate profit need to be equal or greater than HKD 50 million of which the first two years had an aggregate profit of at least HKD 30 million and the third year a profit of at least HKD 20 million; and Market capitalisation at the time of listing of at least HKD 500 million.
How much did the HKEX raise from IPOs in 2020?
From January 2020 to December 2020, the IPO equity funds raised at the HKEx amounted to approximately US$51,279 million, ranking second in the global listing market. 4 The Hong Kong Government and HKEx endeavour to maintain Hong Kong as an attractive spot to local and foreign companies for fundraising and listing activities.