HK looks to lure more floats with new IPO rules

With the city facing rising competition to attract initial public offerings, the Hong Kong stock exchange is proposing two chapters of new rules to existing listing ones.

Hong Kong lost its spot as the world's top IPO fundraising venue in 2017. In response, the Hong Kong Stock Exchange is aiming to attract more high-quality emerging and innovative companies to launch IPOs in the city.

It unveiled the proposed changes in mid-December, which would allow the listings of technology companies with a valuation of at least HK$10 billion ($1.28 billion) to involve multiple classes of shares, as well as pre-profit biotech firms, subject to additional disclosures and safeguards. The details of the new rules will be put up for formal public consultation in the first quarter of this year.