Following approval for Rusal’s Hong Kong initial public offering (IPO) to institutional investors, market participants are asking whether more IPOs with restrictions could follow and lead to a professionals-only market.
On December 31, Hong Kong’s listing committee and regulator gave Rusal approval for its $2.6 billion listing (despite not meeting profit requirements) on the condition that the prospectus warned investors that Rusal did not meet this standard and the deal was not available to retail investors.
Some think the deal is a one-off but that clarification is needed on whether...