A Guide to an Initial Public Offering on Hong Kong’s GEM

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PREFACE

Completing an IPO is a critical fund-raising milestone for high-growth companies. It is no coincidence that 98% of significant companies in any strategic industry are public listed!

Hong Kong’s Growth Enterprise Market (GEM) has positioned it self as the bourse of choice for Asian high-growth companies. The GEM was launched in November 1999 and has achieved sustained growth, even during periods of volatility in the global IPO market. As of 31st December 2001 the total funds raised were approximately HKD23 billion and 111 companies had been listed. Hong Kong (together with New York, London and Tokyo) remains one of the four financial capitals of the world.

The main objective of this book is to facilitate a better understanding of “why and how” to carry out a GEM IPO.

I am informed that this book is the first of its kind. I hope that the present tentative effort will mature in successive editions.

I am indebted to many people who have contributed their time, energy and wise counsel. Special thanks to the Chairman of the GEM, Dr. K.S. Lo, for his support and vision.

My gratitude also goes out to:-

  • The CEOs of GEM-listed companies, who shared their experiences.
  • The Hong Kong Stock Exchange, in particular Frank Slevin, Managing Director of Salomon Smith Barney, Hong Kong, and Michael Chum, Executive Director of Kim Eng Securities.
  • My clients, who have justified my thirst for understanding the legal process of IPOs in London, Hong Kong, Singapore and Malaysia.
  • Finally, to Kartini Hashim for her love and support.

Needless to say (following the current trend of deflecting blame), all the shortcomings of the book are the responsibility of the people mentioned above!