Recent amendments to the listing rules of the Hong Kong
Stock Exchange (HKEx) are set to pave the way for a number of
US companies in the pharmaceutical, biotech and life sciences
sectors to conduct their initial public offerings (IPOs) on the
exchange as soon as September.
Under the new listing regime, these types of companies that
do not meet the traditional financial eligibility tests
(especially those who have not recorded revenue in the track
record period) can apply to list in Hong Kong. It also permits
a shorter track record period of two years as opposed to a
traditional three years.
This can be viewed as something of a blowback from
Alibaba’s 2014 IPO in New York, which was the
largest US IPO at the time and ruffled a lot of feathers in the
Asian markets. It is also indicative of HongKong’s
desire to become a more international listing...