HKEx Announces Move to T+2 IPO Settlement Under FINI Plan
HKEx has announced that it will proceed moving IPOs to a “T+2” settlement timetable under its “Fast Interface for New Issuance” (FINI) plan. This shift is a slight change to the original T+1 settlement plans proposed in the HKEx concept paper published in November 2020, but nevertheless a significant improvement on the current process, which generally results in IPOs in Hong Kong settling on a T+5 basis.
The plan will require IPOs to follow the new T+2 timetable unless a company obtains a waiver from HKEx. The new timetable requires that:
SFC issued a bulletin regarding issues relating to the Codes on Takeovers, Mergers and Share Buybacks (the
Takeovers Code), which includes the following highlights:
Identifying All Relevant Regulatory Approvals for Completion of Offers
SFC reminded offerors, offeree companies and their respective advisers that sufficient and thorough due diligence should be conducted at the outset of a transaction so that all regulatory approvals required for the completion of offers are identified early and disclosed appropriately in line with Rule 3.5(e) of the Takeovers Code. Failure to do so can cause numerous problems, for example, unnecessary delays in the offer timetable or locking up shareholder shares pending regulatory approvals (where discovered and disclosed after the shareholders have accepted an offer). Furthermore, if a particular regulatory approval is not specifically disclosed in the firm intention announcement, SFC may not allow such condition to be invoked under Note 2 to Rule