On January 24, 2025, the Securities and Futures Commission ("SFC") concluded its consultation on proposed amendments to cease mixed media offers ("MMOs"), aiming to facilitate a fully electronic subscription process for public offerings.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On January 24, 2025, the Securities and Futures Commission ("SFC") announced its consultation conclusions on proposed amendments to cease permitting mixed media offers ("MMOs").
The proposed changes, which received support from all respondents, will allow online channels to be the sole means for subscribing to public offers of equity securities or interests in collective investment schemes listed or to be listed on the Stock Exchange of Hong Kong Limited ("SEHK"). This includes the issuance of electronic prospectuses, with printed application forms no longer available.
The SFC intends to gazette the notice for these proposed amendments and table it in the Legislative Council for negative vetting as soon as possible.
MMOs are defined as offers of shares in or debentures of a company listed or to be listed on SEHK without a printed form prospectus, provided specific conditions are met.
The SFC issued its Consultation Paper on Proposed Amendments on August 16, 2024, concluding the consultation period on October 18, 2024.
Existing channels for subscriptions to public offers of debt securities will remain unchanged.
On the same day, the Stock Exchange of Hong Kong Limited ("SEHK") published its consultation conclusions, agreeing to adopt the proposal to remove the availability of MMOs for listing applicants and listed issuers under SEHK rules.
The SFC's proposed amendments aim to improve regulatory efficiency and effectiveness, contributing to Hong Kong's shift towards a paperless market.
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