Initial public offering which is also known as stock markets launch and it is a type of public offering through which the shares of the company are being sold to the other individual investors. The IPO is being underwritten by one or more banks and they also help in arranging the shares to be listed on the stock exchanges. The Hong Kong ipos was legally incorporated in the year 1980 for developing the financial products and its relative services.
There are many reasons available for choosing the Hong Kong initial public offerings because they have many attractive spots to the local and the foreign companies for the activities like fund raising and also the listing activities. The features offered by the Hong Kong ipos are some of the reasons for the companies to choose this place as the best one for IPOs. Hong Kong has the leading position in the global market and is being established itself as a financial centre for the international global leading listing venue. They have a well established common law system which has a set of rule which is being upheld by the independent judiciary and gives a confident to the local and the foreign issuers as investors. They also act as a common listing and the fund raising venue for most of the international enterprises and also serves as a key link for the China to get in connect with the other global capital markets.
Supporting features of Hong Kong initial public offerings
The Hong Kong initial public offerings enjoys a balanced mix of the institutional and also the retail investors from a wide range of industries like real estate, telecommunication, upstream and the downstream manufacturing, retail business, e-commerce, construction, internet business and so on. There are more organizations which are responsible for regulating the IPOs in Hong Kong. The major rules and regulations which are being done for listing the process in Hong Kong include most of the popular companies. The securities and the futures ordinance impose the civil and the criminal acts for the misstatements which includes all the investment a company possess. They also passed an act that a person who makes any fraudulent or any reckless activities must have to deal with the liable compensation provided by that company. The obligations which are exclusively imposed on the public companies in Hong Kong will have a set of rules to be followed.
- When an issuer needs to publish an announcement for the other different activities, they should be notified to the company.
- The company should provide the annual report, interim report and the quarterly reports at the end of their relevant period.
Also, the listing market in the Hong Kong should have a current regulatory regime which may arise during or after the IPO process.