what is ipo hong kong lawyer

Hong Kong IPO and Corporate Finance As a top corporate finance law firm in Hong Kong offering comprehensive services including initial public offerings (IPOs). Our listing lawyers are well positioned to help your private company go public on the stock exchange without hassle and in compliance with all the necessary regulations.

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Why hire Hong Kong IPO process lawyers?

Particularly, our Hong Kong IPO process lawyers have advised multinational companies, state-owned companies and private corporations engaged in various industries as well as investment banks and other financial institutions. advising on suitability of listing;

Who are the key figures during an IPO in Hong Kong?

Key figures during an IPO in Hong Kong include: Your company, also known as the listing applicant: Your company will be providing assistance to all the parties involved in better understanding the business you have created and your strategy. You will also be helping all parties involved when the time for due diligence comes.

What are the rules and regulations for IPOs in Hong Kong?

Key rules and regulations applicable to the IPO process in Hong Kong. The major laws and regulations governing the listing process in Hong Kong include the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), the Securities and Futures Ordinance (Cap. 571), and the Listing Rules.

Why hire our Hong Kong corporate finance lawyers?

Our Corporate Finance Lawyers in Hong Kong have a wealth of experience in the full spectrum of corporate financing, including initial public offerings (IPOs), dual listing, secondary offerings and debt offerings. We are experienced in all forms of public offerings and capital raising activities.

What does an IPO lawyer do?

Lawyers play a very important role in the IPO process and the form that really takes is structuring the transaction within the confines of the law. They really tell issuers and the underwriters, the bankers advising the issuer in the IPO process, how the IPO can be completed within the regulatory framework.

What type of law is IPO?

It typically refers to an SEC-registered offering of shares of an issuer's capital stock where the issuer is a non-reporting company offering its equity securities to the public for the first time.

How does IPO work in Hong Kong?

Listing and IPOs in Hong Kong are generally carried out in three steps which are the initial preparation, regulatory vetting and marketing, and offering. Once the decision to go public is made, you should be aware of the key figures necessary to carry on the process.

Who can apply for HK IPO?

This test requires an applicant to have: (i) an expected market capitalisation of at least HK$4 billion at the time of listing; and (ii) revenue of at least HK$500 million arising from the principal activity of the applicant for the most recent audited financial year.

What does an ECM lawyer do?

Advising on the structuring of complex capital instruments, such as debenture and hybrid offerings. Advising on capital management strategies, including buy-backs and capital reductions.

What does capital markets mean in law?

Securities/Capital Markets Law is the practice area of lawyers who represent entities that issue securities to raise capital, security holders seeking to sell their securities, or banks and investment banks that underwrite and sell such securities.

What is the IPO process?

An initial public offering (IPO) is the process by which a private company “goes public” and sells new shares on the stock market. An IPO allows a company to unlock new growth and raise capital from public investors as well as provide private investors with the opportunity to exit their investment and realize a profit.

How do you qualify for an IPO?

Eligibility Criteria for IPO Application As Mandated By SEBIThe company should have at least Rs 3 crore in net tangible assets in each of the previous three years. ... The company should have a net worth of at least one crore rupees in each of the previous three years.More items...

What is IPO vetting?

The IPO Vetting Department of the Listing Division is responsible for processing applications for new equity listings including transactions by listed companies deemed to be new listings and processing pre-IPO enquiries relating to new equity listings.

What is a IPO loan?

A Pre-IPO loans is a specialty product in the securities-based lending market, and very few operate in the space. As more startups and businesses offer equity to employees before listing, this type of finance is increasingly sought-after.

How long is Hong Kong IPO?

The IPO process: Steps, timing and parties and market practiceStepsTypical timelineVetting process70 days before the Listing DateListing hearingGenerally around 20 days before the Listing DatePost-hearing14 days before the Listing DateProspectus registrationAt least one day before the date of prospectus9 more rows

How can I get listed in Hong Kong?

Main Board Listing requires the review of three years' of financial track record and the fulfilment of any one of the following tests:Profit test: Market capitalisation at the time of listing more than HK$500m. ... Market Cap / Revenue test: ... Market Cap / Revenue / Cashflow test:

The IPO process: Steps, timing and parties and market practice

The SEHK adopts a streamlined vetting process for listing application. The listing application submitted to the SEHK must be substantially complete. Depending on the complexity and the scale of the IPO, below is a general timeline for illustrative purposes:

Regulatory architecture: Overview of the regulators and key regulations

The responsibility of overseeing the regulatory regime of the Hong Kong IPO market primarily rests with the SEHK and the SFC.

Public company responsibilities

The Listing Rules require companies listed on the SEHK to comply with a list of continuing obligations. Listed below are some examples of such obligations:

Potential risks, liabilities and pitfalls

As discussed above, the listing market in Hong Kong is subject to joint regulation by the SEHK and the SFC. Under the current regulatory regime, civil and criminal liabilities may arise during and after the IPO process.

Endnotes

1. “The history of the development of the Hong Kong Stock Exchange and its market”, (Hyperlink)

Hong Kong IPO guide

The Main Board (Main Board) of The Stock Exchange of Hong Kong Limited (SEHK) is one of the world’s largest and most liquid markets for securities trading. A listing on the Main Board is an aspiration for many corporations.

Joining the Main Board

The Main Board (Main Board) of The Stock Exchange of Hong Kong Limited (SEHK) is one of the world’s largest and most liquid markets for securities trading. A listing on the Main Board is an aspiration for many corporations.

How long does it take to get an IPO in Hong Kong?

Stage 1: Initial preparation. Stage 2: Vetting and hearing. Stage 3: Marketing and offering. Preparation for the listing process in Hong Kong requires 2 to 3 years of careful and strict planning before implementation. A thorough reorganisation of the company to meet the listing requirements regulations is required, ...

What is the role of a sponsor in an IPO?

The main role of the sponsor during the IPO is to represent the company in front of the Stock Exchange of Hong Kong (SEHK), conduct due diligence on the listing company, its shareholders, and management, and make sure that the prospectus is accurate and contains all necessary information. The sponsor coordinates all parties involved in ...

Who coordinates all parties involved in an IPO?

The sponsor coordinates all parties involved in the IPO and holds meetings with the SEHK and the Securities and Futures Commission (SFC). Multiple sponsors can be appointed, but at least one of them must be independent of the company. Usually, the appointed sponsor is an investment bank.

How long does it take to prepare for an IPO?

The initial preparation stage of an IPO begins approximately 1 to 2 years before the listing date, and it includes the overall assessment of the listing company and its reorganisation. Stage 1 usually includes the following steps: