Track record requirements
• Trading records of not less than three financial
years(profits of HK$20 million for most recent year
and of aggregate of HK$30 million for the first two
years)
• Exemptions for certain types of companies,such
as infrastructure,which can have shorter
trading records
• Must be under substantially the same management
during the track record period
• A focused line of business not specifically
required
• Must have control over its business
Market capitalization
• Must be at least HK$100 million for shares at
the time of listing
Minimum public float
• Market capitalization of at lest HK$50 million
held by the public at time of listing
• Minimum 25% of the issued share capital at the
time of listing if the market capitalization of
the applicant dose not exceed HK$4 billion
• Can be lowered to 10% of the issued share capital
at the time of listing if the market capitalization
of the applicant exceeds HK$4 billion and market
capitalization of at least HK$1 billion is held by the
public
Future prospects
• No specific requirement but the applicant is
required to include a general statement of future plans
and prospects
• Inclusion of profit forecast is optional
Accoutants' report
• In general,accountants' report covers at least
three complete financial years,immediately preceding
the issue of the prospectus
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Corporate governance
• Two independent non-executive directors required
• Audit committee encouraged
Acceptable jurisdictions
• Hong Kong,Bermuda,the Cayman Islands and the
People's Republic of China
• Other jurisdictions for secondary listing may
be considered
Restrictions on initial shareholders
• A controlling shareholder at the time of listing
must undertake:
--Not to dispose of his interest in the issuer during
the first six months after listing
-- Not to dispose of his interest in the issuer in the
next six months such that he would cease to be a controlling
shareholder
Other considerations
• Competing business of controlling shareholders
or directors are allowed but full disclosure is required
• New issue must be fully underwritten
• Listed issuer is not allowed to issue new securities
in the first six months after listing
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