SFC and HKEX modify listing rules for specialist tech firms and De-SPAC transactions

The modification will apply until 31 August 2027.

The Securities and Futures Commission (SFC) and Hong Kong Exchanges and Clearing Limited (HKEX) announced temporary modifications to the requirements for specialist technology companies and de-special purpose acquisition company (De-SPAC) transactions.

Under Chapter 18C of the Main Board Listing Rules, the parties will lower the minimum initial market capitalisation for listing specialist technology companies to $4b for commercial firms and $8b for pre-commercial firms, down from $6b and $10b, respectively.

For De-SPAC transactions, the SFC and HKEX have set the minimum independent third-party investment at either the current percentage of the De-SPAC target's negotiated value or $500m.

The modified minimum initial market capitalisation for specialist technology companies will apply to all listing applicants aiming to list under Chapter 18C whose expected listing date is on or after 1 September and relevant listing applications submitted on or before 31 August 2027.

The modifications will apply from 1 September to 31 August 2027. Before 31 August 2027, HKEX may review the requirements and conduct public consultation if needed.