Friday June 16 2017
News Source: Global Exchanges
Focus: Other
Type: General
Country: Hong Kong
Link: http://www.hkex.com.hk/eng/newsconsul/mktconsul/Documents/cp2017062.pdf
Hong Kong Stock Exchange (HKEX) have published a consultation paper on the proposed changes to the Global Exchange Market (GEM) and Main Board Listing Rules.
Summary of proposals:
- to re-position GEM as a stand-alone board and hence remove the GEM Streamlined Process for GEM Transfers;
- to require all GEM Transfer applicants to have (i) published and distributed at least two full years’ financial statements after their GEM listings; and (ii) not been subject to any disciplinary investigations by the Exchange in relation to a serious breach or potentially serious breach of any Listing Rules for 24 months before they can be considered for a GEM Transfer;
- to retain the current track record requirement under the GEM Listing Rules (i.e. two financial years);
- to retain the current practice of not requiring a GEM applicant that can meet the Main Board admission requirements to list on the Main Board instead of GEM;
- to increase the Cashflow Requirement from at least HK$20 million to at least HK$30 million;
- to retain the current Profit Requirement to determine eligibility to list on the Main Board;
- to increase the minimum market capitalisation requirement from HK$100 million to HK$150 million for GEM, and from HK$200 million to HK$500 million for the Main Board;
- to increase the post-IPO lock-up requirement on controlling shareholders from one year to two years for GEM, and where appropriate, the Main Board;
- to introduce a mandatory public offering mechanism of at least 10% of the total offer size for all GEM IPOs;
- to align the GEM Listing Rules on (1) placing to core connected persons, connected clients and existing shareholders, and their respective close associates; and (2) the allocation of offer shares between the public and placing tranches and the clawback mechanism, with the relevant requirements under the Main Board Listing Rules; and
- to increase the minimum public float value of a GEM issuer’s securities from HK$30 million to HK$45 million, and from HK$50 million to HK$125 million for a Main Board issuer’s securities.
Please click on the above link for more information.