HKEX reaches out to Saudi, Indonesian companies in move to broaden IPO targets in emerging markets
- IPOs may take time as some of these companies are required to be listed first in their home market, before they can pursue an offshore listing
- IPO approval time has shortened from 70 business days in 2022 to 48 currently, CEO Chan says
Some of these companies are required to be listed first in their home market, before they can pursue an offshore listing, creating a time lag in the process, she said when discussing measures to promote liquidity and competitiveness in the securities market at the Legislative Council (Legco) on Monday.
The stock exchange added the Saudi Exchange, or Tadawul, and the Jakarta Stock Exchange as “recognised” bourses last year, creating a shortcut for companies traded on both venues to consider a secondary listing in Hong Kong.
This recognition followed agreements to explore cooperation in a number of areas, including cross-listing opportunities.
The listing of a Saudi-focused exchange-traded fund by CSOP Asset Management in December, the first of its kind in Asia, was a significant development, Wilfred Yiu Ka-yan, HKEX deputy CEO, said during the Legco meeting.
It showed Hong Kong’s robust financial system and service support, allowing issuers to choose Hong Kong as their listing location, he said.
