Requirement for Mainboard IPO

Business record requirement

• 3 years(if meeting market capitalization/revenue/test, can be shorter than 3 years)
• Administration and operation under substantially the same management
• Operation under substantially the same ownership and control in recent 1 year

Management requirement & undertaking

Management requirement:

• It shall has 3 independent nonexecutive directors
• It shall set up audit committee

Shareholders undertaking:

• Disclosure in IPO documents not to sell its interests in the company within the first six months after IPO

Management undertaking:

• Not to sell its interest in the company within 12 months after IPO, so that it's no longer the controlling shareholder of the company, keeping at least 30% interest in the company

Recognized Jurisdiction

• Hong Kong
• The People's Republic of China
• Bermuda
• Cayman lslands

Minimum public float

• The public float in IPO shall not less than HKD50 million
• The public shareholding percentage in IPO is more than 25% of issued share capital
• If the market capitalization in IPO is more than HKD10 billion, the Hong Kong Exchange will reduce the public shareholding to 15%-25%

Other requirement

• The controlling shareholder or director can conduct business competing with the company, subject to full disclosure
• Unable to do IPO in sole manner of placing
• The portion of public subscription shall be fully underwritten
• No issue of new shares within the first six months after IPO of the company