New HKEx Guidance for Biotech Companies Listing under Chapter 18A
The Hong Kong Stock Exchange (HKEx) issued new and updated guidance letters in April 2020 to assist pre-revenue Biotech companies applying to list under Chapter 18A of the Main Board Listing Rules (Chapter 18A). The latest guidance follows a review by HKEx of how Chapter 18A operates and comprises:
- Revised Guidance Letter HKEx-GL92-18 – Suitability for Listing of Biotech Companies[1] providing additional guidance on the suitability criteria for pre-revenue Biotech listing applicants and clarifying the circumstances in which a listing applicant’s existing shareholders can subscribe in its IPO; and
- New Guidance Letter HKEx-GL107-20 – Disclosure in Listing Documents for Biotech Companies[2] which sets out disclosure guidance specific to pre-revenue biotech companies applying to list under Chapter 18A which supplements Guidance Letter HKEX-GL86-16’s general disclosure guidance for all listing applicants.