Hong Kong Stock Exchange will introduce a new listing regime for Specialist Technology Companies

The Exchange has published the conclusion paper to its October 2022 consultation on the “Listing Regime for Specialist Technology Companies” and the accompanying guidance letter (GL115-23). Our client alert from October 2022 provides an overview of the original proposal. Taking into account comments and suggestions from respondents, the Exchange has modified some of the original proposal, in particular, lowering the minimum market capitalization thresholds for both Pre-Commercial and Commercial specialist technology companies (“Spectechs”), build in greater flexibility regarding benchmark investments by pathfinder sophisticated independent investors and R&D expenditure ratio for Pre-Commercial Spectechs with revenue of at least HK$150 million and broadening the types of independent investors who can be taken into account to meet the minimum allocation of the IPO shares to ensure a robust price discovery process. The new Spectech listing regime will be set out in a new Chapter 18C to the Main Board Listing Rules.

This bulletin contains an easy-to-use checklist to help determine whether a company could be eligible under the new listing regime and unique listing and post-listing requirements.