What are the requirements for listing on Hong Kong Growth Enterprise Market?

High-growth enterprises may not be able to obtain profit records in the initial stage, so the GEM listing rules do not stipulate that newly listed Shenjing people must have past profit records before they can be listed on the GEM.

2. Sponsors and their continuous employment period

A new listing applicant must employ a GEM sponsor to submit the listing application on his behalf for a fixed period, covering at least the rest of the financial year in which the company is listed and the next two complete financial years.

3. Acceptable jurisdiction

The new applicant must be established under the laws of Hongkong, China, Bermuda or Cayman Islands.

4. Operation history

A. Proof of having valid business records for at least 24 months;

Note: If the company applying for listing is a newly established project company or a company exploiting natural resources, or under special circumstances accepted by the Stock Exchange, the requirement of 24-month active business record may be relaxed with the approval of the Stock Exchange.

B. Has been actively developing its main business;

C. During the active business record period, its management and ownership are basically the same;

D. If its subsidiary is responsible for the applicant's active business, it must have the control right of the board of directors of the subsidiary and the actual economic rights and interests of not less than 50%;

E. Prepare an accountant's report, which shall cover two complete fiscal years immediately before the publication of the listing documents.

5. Business prospects

New applicants should list their business goals and explain how they intend to achieve them within the specified time.

6. Minimum public shareholding

A. For companies with a market value of less than HK$10 billion, the minimum public shareholding ratio is 20%, and the amount involved must reach HK$.

30 million yuan;

B for a company with a market value equal to or more than HK$ 65.438+000 billion, the minimum public shareholding is HK$ 200 million or 654.38+05%, whichever is higher;

C new applicants must have at least 100 public shareholders at the time of listing.

7. Corporate governance

A employ competent personnel to take charge of the following positions: company secretary, qualified accountant, supervisor and authorized representative;

B. appoint at least two independent non-executive directors;

C. establish an audit committee.

When underwriting the initial public offering of shares, there are no strict underwriting requirements.

8. Others

At the time of listing, the total of management shareholders and major shareholders must account for not less than 35% of the issued share capital of the new applicant.

The main categories of IPO costs usually include:

1. Professional fees, sponsorship fees, corporate legal consultant fees, sponsorship legal consultant fees, accounting fees, property appraisal fees and public relations service consultant fees.

B. Printing expenses: translation expenses of prospectus, application forms, stocks and other printing expenses.

C. Marketing expenditure

D. Stock transfer registration fee collection bank fee, underwriter's commission (if applicable), initial listing fee and transaction levy.

Except the initial listing fee and transaction levy, all the above fees can be negotiated by the new applicant with relevant parties, but the fees will be affected by market factors. The initial listing fee generally accounts for a small part of the total initial listing cost and must be paid to the Stock Exchange at the same time as the listing application form is submitted. The initial listing fee is not refundable and is calculated according to the expected market value of the equity securities related to the listing application.

The initial listing fee of GEM is summarized as follows:

Monetary value of equity securities listed at IPO fee (HK$ million)

The initial listing fee (HK$) shall not exceed 1 00 1 00,000,1000150,000 and1000,200,000.

The transaction levy to be paid by the new applicant to the Stock Exchange is 0.0 1 1% of the value of the securities to be issued by the new applicant.

Please refer to Appendix 9 of the GEM Listing Rules for details.