Conditions for Listing of Biotech Companies
An applicant that has applied for listing under this Chapter must, in addition to satisfying the requirements of this Chapter, also satisfy the requirements of Chapter 8 (other than rules 8.05, 8.05A, 8.05B and 8.05C).
An applicant that has applied for listing under this Chapter must:—
(1) demonstrate that it is both eligible and suitable for listing as a Biotech Company;
(2) have an initial market capitalisation at the time of listing of at least HK$1,500,000,000;
(3) have been in operation in its current line of business for at least two financial years prior to listing under substantially the same management; and
(4) ensure that it has available sufficient working capital to cover at least 125% of the group's costs for at least 12 months from the date of publication of its listing document (after taking into account the proceeds of the new applicant's initial listing). These costs must substantially consist of the following:—
(a) general, administrative and operating costs (including any production costs); and
(b) research and development costs.
Note 1: The Exchange would expect that the issuer would use a substantive portion of the proceeds from its initial listing to cover these costs.
Note 2: Capital expenditures do not need to be included in the calculation of working capital requirements for the purpose of this rule. However, where capital expenditures are financed out of borrowings, relevant interest and loan repayments must be included in the calculation. For the avoidance of doubt, Biotech Companies must include research and development costs, irrespective of whether they are capitalised, in the calculation of working capital requirements for the purpose of this rule.