Hong Kong’s market watchdog and stock exchange operator have set up a special communication channel and a new confidential filing option to help technology and biotech companies prepare listing applications amid a rush of first-time share offerings in the city.
The Technology Enterprises Channel, which was announced by the Securities and Futures Commission (SFC) and Hong Kong Exchanges & Clearing (HKEX) on Tuesday, aims to assist emerging and innovative companies in raising funds, as outlined in Financial Secretary Paul Chan Mo-po’s budget speech in February.
The special channel will provide “early and tailored guidance” for prospective companies, “helping them address key matters at a preparatory stage and navigate regulatory requirements with greater clarity and confidence, thereby facilitating a more efficient pathway to successful listing in Hong Kong”, said Katherine Ng, the head of listing at HKEX.
The exchange will permit biotech and specialist technology companies – in the hi-tech, advanced hardware and software, new materials, new energy and food and agriculture technologies industries – to submit their application filings confidentially. This option is available immediately.
IPOs in the city could raise between US$17 billion and US$20 billion this year, up from last year’s US$11 billion, Chan said in March.
