HKEX(HK:00388) Zheng Quan Ri Bao·2025-08-03 16:08Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is implementing significant reforms to its IPO pricing mechanism, aimed at enhancing market competitiveness and adapting to international investor needs [1][2]. Group 1: Changes in IPO Mechanism - The new regulations require at least 40% of shares to be allocated to the book-building portion for institutional investors, down from the previously suggested 50% [2][3]. - The maximum percentage for public subscription can now be adjusted up to 35% under Mechanism A, increasing from the original 20% [3]. - Mechanism B introduces a fixed allocation for public subscription between 10% and 60%, with no reallocation mechanism, allowing issuers to control the public offering portion more effectively [4]. Group 2: Public Holding Requirements - HKEX is consulting on adjusting the public holding requirement, proposing a tiered system based on market capitalization, which would provide clearer guidelines for companies seeking to list [6][7]. - The initial public holding requirement may be set at 10% for companies with a market value of HKD 1 billion, or 5% for "A+H" issuers, enhancing flexibility compared to the previous 25% requirement [6][7]. - The new rules aim to ensure sufficient shares are available for trading post-IPO, aligning with international practices and improving the attractiveness of the Hong Kong listing mechanism [7].