In the first two deals of their kind to date, two Australian companies were recently delisted from their home share market and came to be listed in Hong Kong.
“It is a big decision for a listed company to change its listing venue, and we can expect a multitude of factors behind such a decision,” Candy Chan, a partner at King & Wood Mallesons (KWM) in Hong Kong, told China Business Law Journal. “For instance, one consideration would be the difficulty of further capital raising in Australia.”
The Dragon Mining IPO was the second in which an Australian company delisted from the Australian Securities Exchange (ASX) and listed on the main board of The Stock Exchange of Hong Kong Limited (HKEX).
KWM had also advised OPUS Group, an Australia-based printing solutions and services provider, on changing its listing venue from ASX to HKEX.
Chan said Hong Kong’s well developed capital markets and strong legal, regulatory and financial regimes made the city an ideal listing platform. “Shareholders of Australian companies can benefit from the city’s higher market liquidity and valuation, as well as its potentials to attract strategic investors and improve fiscal efficiencies,” she said.
“The successful listings of both Dragon Mining and OPUS Group further reinforce Hong Kong’s potential to attract a more diversified portfolio of listed companies.”
In the Dragon Mining IPO, the KWM Hong Kong team was led by Chan, with support from associates Jonathan Tsang and Omina Leung, trainee solicitor
Andrew Watson and legal manager Nicholas Lee.
The KWM Hong Kong team acted on the OPUS Group’s Hong Kong listing and was led by partners John Baptist Chan and Candy Chan. The firm’s Australian team was led by partner Nigel Hunt.