The Securities and Futures Commission (SFC) today released consultation conclusions on proposed amendments to cease permitting mixed media offers (MMOs) (Note 1) to facilitate a fully electronic subscription process for public offerings (Note 2).
All respondents supported the proposals, which will be adopted by the SFC in full. Once implemented, online channels will serve as the only means to subscribe to public offers of equity securities or interests in collective investment schemes (Note 3) listed or to be listed on the Stock Exchange of Hong Kong Limited (SEHK) (Note 4). Electronic prospectuses will be issued, and printed application forms will no longer be available.
“The proposals are part of our ongoing work to digitalise the public offering process for greater regulatory efficiency and effectiveness,” said Mr Michael Duignan, the SFC’s Executive Director of Corporate Finance. “They also complement the uncertificated securities market regime as Hong Kong moves another step closer to becoming paperless for the benefit of all market participants.”
The SFC will gazette the notice to make the proposed amendments and table it in the Legislative Council for negative vetting as soon as practicable.
Notes:
- An MMO refers to an offer of any shares in or debentures of a company that are listed or to be listed on SEHK whereby a company is allowed to distribute a printed application form without it being accompanied by a printed form prospectus, provided that specified conditions are complied with.
- On 16 August 2024, the SFC issued a Consultation Paper on Proposed Amendments to the Companies (Exemption of Companies and Prospectuses from Compliance with Provisions) Notice (Cap.32L) regarding Mixed Media Offers. The consultation period ended on 18 October 2024.
- Subscriptions for public offers of debt securities will continue to be conducted through their well-established channels.
- On 24 January 2025, SEHK published conclusions on its consultation regarding further expansion of the paperless listing regime and decided to adopt the proposal to remove the availability of MMOs for listing applicants and listed issuers under the Rules Governing the Listing of Securities on SEHK.
