HKEX(HK:00388) Jin Rong Jie·2025-08-02 16:17Group 1 - The Hong Kong Stock Exchange officially launched an optimized pricing and allocation mechanism for initial public offerings (IPOs) on August 1, marking a significant transformation in the Hong Kong IPO market [1] - The new regulations will soon take effect, providing issuers with more options and flexibility in their IPO processes [1] - The adjustments were made after receiving 1,253 pieces of market feedback, leading to the adoption of key recommendations from the consultation document [1] Group 2 - The core of the reform is the introduction of two allocation mechanism options for issuers: Mechanism A and Mechanism B [3] - Mechanism A retains the existing allocation framework but increases the maximum percentage of shares that can be reallocated to the public subscription portion from the originally proposed 20% to 35%, benefiting retail investors in oversubscription scenarios [3] - Mechanism B introduces a fixed allocation model where issuers must determine the specific percentage of shares allocated to the public subscription before the offering, with a lower limit of 10% and an upper limit of 60% [3] Group 3 - The new regulations revise the minimum allocation requirement for the book-building portion from at least 50% to 40%, allowing more shares for public subscription and enhancing retail investor participation [4] - This adjustment reflects regulatory considerations to balance the needs of different investor groups, optimizing the participation structure of institutional and retail investors [4] - The new rules also introduce initial free float requirements to ensure sufficient tradable shares are available in the market at the time of listing [4]