Hong Kong stock exchange introduces exemption to ‘double dipping’ restrictions
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HONG Kong Exchanges and Clearing (HKEX) on Tuesday (Nov 21) said its unit has introduced an exemption to its “double dipping” restrictions in a bid to allow investors to buy more shares in an initial public offering (IPO).
Double dipping refers to subscription or purchase of additional securities by an existing shareholder or cornerstone investor of an IPO.
The Hong Kong stock exchange will allow double dipping if an IPO meets certain conditions, such as the offer having a total value of at least HK$1 billion (S$171.5 million), among others, HKEX said.
“We believe this new arrangement will be beneficial to the book building and share allocation process, and is designed to maintain the optimum balance between market facilitation and investor protection,” said Katherine Ng, HKEX head of listing.
The revised regulation will take effect immediately, the bourse operator added. REUTERS
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