HKEX(HK:00388) Sou Hu Cai Jing·2025-08-01 11:26Core Viewpoint - Hong Kong Stock Exchange (HKEX) aims to enhance the robustness of the IPO pricing and allocation mechanism while balancing the participation of various local and international investors in new share subscriptions through proposed reforms [1]. Group 1: Changes in IPO Pricing and Allocation Mechanism - The minimum allocation to the book-building portion is set at 40% of the initially proposed shares for the IPO, down from the previously suggested 50% [1][3]. - Under Mechanism A, the maximum percentage for allocation to the public subscription portion has been increased from 20% to 35% [3]. - Mechanism B introduces a new option where issuers must pre-select a percentage for public subscription, with a minimum of 10% and a maximum of 60%, without a reallocation mechanism [3]. Group 2: Public Holding and Free Float Requirements - The new regulations stipulate minimum public holding and free float requirements for issuers at the time of listing, which include specific thresholds based on market capitalization [4][5]. - The initial free float threshold varies, with requirements set for different categories of issuers, including a minimum of 5% for certain issuers with a market value of at least 600 million HKD [5]. - The new rules will take effect on August 4, 2025, and will apply to all issuers and new listing applicants filing documents on or after that date [5].