Several enquiries but no applications on Day 1 of Hong Kong’s new listing rules because of Labour Day break
HKEX now allows technology companies with dual-class shareholding structures and biotechnology companies with no revenue to list in city
Hong Kong Exchanges and Clearing, the operator of Asia’s third-largest bourse, said numerous companies keen to raise capital under its new listing rules had made inquiries, without any submitting formal applications on Monday, Day 1 of its new listing regime, because they did not want the news of their bids to be lost in a holiday-shortened week.
“We have had a number of pre-IPO enquiries relating to the new listing regime,” said an HKEX spokeswoman. “We expect potential issuers and their consultants will file formal applications in due course. The listing regime is a standing facility and potential issuers don’t need to rush to file applications on the first day.”
Xiaomi, which is looking for an initial public offer that values its business at US$100 billion, is likely to submit its IPO this week after the Labour Day holiday on Tuesday, according to several bankers familiar with the plans.
Joseph Tong Tang, chairman of Morton Securities, said that since Tuesday was a public holiday, it might have led to no applications on Monday.
“Companies such as Xiaomi may like to apply for a listing this week, but not the first day of the listing regime. There is market speculation that a number of biotechnology companies are planning to list too,” said Tong.