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.
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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.
The move will build on the rapidly growing initial public offerings (IPO) pipeline in Hong Kong driven by improved valuations and liquidity. Surging capital inflows ahead of some coming mega listings forced the city’s de facto central bank step in to weaken the local currency.
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.