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Comparison of GEM and second board of Singapore on listing, transfer and spin-off requirements

Comparison of GEM and second board of Singapore on listing, transfer and spin-off requirements

Requirement HKEx (GEM Board) Singapore Stock Exchange (Catalist)
1 Financial Eligibility Requirements
A Summary Comparison Market capitalization of at least HK$100m
Cash flow of at least HK$20m (see 1F)
No quantitative thresholds
B Profit Test No requirement No Requirement
C Aggregate market capitalization of new applicant At least HK$100m No Requirement
D Market capitalization of each class of securities listed No Requirement No Requirement
E Revenue No Requirement No Requirement
F Aggregate cash flow Cash flow of at least HK$20m generated from operating activities in the ordinary and usual course of business before changes in working capital and taxes paid for the two financial years immediately preceding the issue of the listing document No Requirement
G Assets No Requirement No Requirement
2 Operating, ownership and management requirements
A Minimum operating history At least two financial years No Requirement
B Ownership continuity requirement The applicant must have continuity of ownership and control throughout the full financial year immediately preceding the issue of the listing document and up until the date of listing No Requirement
C Management continuity requirement The applicant must have been under substantially the same management throughout the two full financial years immediately preceding the issue of the listing document and up until the date of listing No Requirement
3 Distribution of shareholders
A Minimum number of shareholders At least 100 shareholders At least 200 shareholders
B Minimum shares in public hands The market capitalization of equity securities in public hands must be at least HK$30m and an adequate spread of holders (at least 100 persons as a guideline)
25% of total issued share capital of the applicant
On admission at least 15% of post-invitation share capital must be in public hands
The number of public shareholders must be at least 200
4 Transfer between Second Board and Main Board
A Choice of markets No Requirement No specific requirement identified
5 Spin-off
Conditions for Parent Company/Remaining Group
A Requirement to meet mainboard listing requirements No Requirement If the new entities are to be listed on the MB, the remaining businesses of the listed entities after the spin-off should be viable and profitable and comply with the MB admission criteria
B Requirement to compulsorily transfer to main board before spin-off No Requirement No Requirement
Conditions for Entity to be Spun-off
A Choice of market No restriction No restriction

JUNE 2014

This note is provided for information purposes only and does not constitute legal advice. Specific advice should be sought in relation to any particular situation. This note has been prepared based on the laws and regulations in force at the date of this note which may be subsequently amended, modified, re-enacted, restated or replaced.

As Hong Kong solicitors, Charltons is only qualified to advise on Hong Kong law and we express no views as to the laws of any other jurisdictions.

GEM Board

HKEx

Listing requirements

Listing document

Singapore Stock Exchange

Financial Eligibility Requirements

Spin-off

transfer to main board

Hong Kong law

HK GEM Board

GEM HK
GEM Stock
Hong Kong Stock Market

Skills

Posted on

2014-06-16