What is an ‘IPO’?
Initial Public Offering(IPO) is the stock of a private company as a public offering for the first time. In an IPO, it is mostly used by companies to raise funds to develop the company's business, possible to monetize the investments of early private investors, and to become public traded enterprises. When shares trade freely in the open market, money will flow between public investors.
What are the advantages for a company going public?
• Elevate the company’s image
• Increase publicity
• Expand business and marketing opportunities
• Enhance the company's product brand popularity and credibility
Good Capital Market Environment in Hong Kong
Hong Kong is an international financial and advisory center with criterion and ripe capital market.
• Perfect laws and regulations
• No foreign exchange management
• Do not levy taxes on dividends and profits from any placing
• Public participation and institutional investors in the active trading
• Attain a desirable valuation and enhance its corporate governance
• Gain listing approval or follow-up finance approval in shorter time that can help an enterprise to enhance
the speed to expand into oversea markets.
Pre-planning: Removing All Obstacles to Create Favourable Conditions for Listing
• Assessing the eligibility of the company to be listed in Hong Kong
• Preparing a feasibility report for listing
• Formulating a development direction of the company for the purposes of listing
• Examining the accounting system and accounting record of the company and giving advices for
• Devising a tax saving plan for the company and individuals (shareholders)
• Designing a restructuring plan
Execution of IPO: Coordinating the Listing Team to Shorten the Listing Process
• Assisting in choosing the best time for listing
• Assisting in the selection of appropriate intermediaries
• Coordinating on the company behalf the intermediary teams to complete their work as scheduled
• Answering enquiries from the Stock Exchange
• Seeking capital at the Pre-IPO stage and help increase market awareness on the company
Follow-up Management: Providing Advices to Facilitate Sustainable Development
• Providing audit services in accordance with the requirements of information disclosure
• Providing timely update on accounting standards, the Listing Rules and other regulatory requirements
and make recommendation
• Providing professional advice on subsequent mergers and acquisitions