2/8/2010 Typical process for public issues ·Preparatory steps Qualifications for admission Profit test:LR 8.05(1) Market capitalization/revenue/cash flow test:LR 8.05(2) Market capitalization/revenue test:LR 8.05(3) ·SEHK's power to waive 。Other requirements Public market and shareholding Non-Hong Kong issuers (inter alia,PRC issuers) Shareholder protection Localization requirements ·Accounting matters Typical process for public issues Must be public company:see s 29. Private co converting to public:see s 30 ·Appoint sponsor Sponsor to engage in due diligence and drafting of the prospectus Apply for listing on stock exchange;submit prospectus(listing document)to stock exchange for review:see LR Ch 9 At the same time,lead underwriter(usually the brokerage arm of the sponsor)will begin process of syndication(obtaining other underwriters Following approval by the stock exchange,register prospectus with Companies Registry:s 38D Issue application forms and prospectuses Open and close subscription lists Allot and issue the shares 8 42/8/2010 4 7 Typical process for public issues • Preparatory steps • Qualifications for admission  Profit test: LR 8.05(1)  Market capitalization/revenue/cash flow test: LR 8.05(2)  Market capitalization/revenue test: LR 8.05(3) • SEHK’s power to waive • Other requirements • Public market and shareholding • Non-Hong Kong issuers (inter alia, PRC issuers)  Shareholder protection  Localization requirements  Accounting matters 8 Typical process for public issues • Must be public company: see s 29.  Private co converting to public: see s 30 • Appoint sponsor • Sponsor to engage in due diligence and drafting of the prospectus • Apply for listing on stock exchange; submit prospectus (listing document) to stock exchange for review: see LR Ch 9 • At the same time, lead underwriter (usually the brokerage arm of the sponsor) will begin process of syndication (obtaining other underwriters ) • Following approval by the stock exchange, register prospectus with Companies Registry: s 38D • Issue application forms and prospectuses • Open and close subscription lists • Allot and issue the shares