Hong Kong exchange's confidential filing option lures tech listing hopefuls, law firm says
initial public offerings (IPOs) in Hong Kong are opting for confidential filings under a new listing channel that allows them to protect sensitive data, according to a lawyer with international law firm Cooley.
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Companies choosing confidential filings often have concerns about sensitive information being released to the market in the early stages of the IPO process, which could attract scrutiny or allegations from competitors, Michael Yu, corporate partner at the firm, said in an interview.
'Some worry that, if they make a public filing, competitors or other parties will discover their listing timeline and could make complaints or take advantage of what is disclosed,' he said. 'There is always a risk of allegations, intellectual property infringement or challenges to the accuracy of their data.'
The
stock exchange 's new regime helped companies sidestep such issues, which could speed up the IPO application process, he said.
'About 50 per cent of companies that are eligible to raise funds under Chapters 18A and 18C are choosing confidential filings,' Yu said. Reuters earlier reported that at least two dozen Chinese companies had confidentially filed to list in Hong Kong this year.
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