In the given problem, though, the place of incorporation of “Beauty Care Ltd or BCL “is not given, it is assumed that it has been incorporated in a valid jurisdiction. Hence, it is assumed that it is not a private company incorporated in Hong Kong and a company registered elsewhere, which is suitable for listing in Hong Kong.
It should have a past trading record in the last three financial years and its net profit after taxes but before dividend should not be lesser than HK $ 20,00,0000 and in respect of the last two financial years, it should not be lesser than HK$ 30, 00,000. In the last three financial years, a minimum of HK$50 million should have been reported as profit.
At least twenty five percent of minimum paid-up capital should be controlled by at least not less than one thousand public shareholders. It is to be observed that above mentioned minimum number of public shareholders shall exclude any employee holdings of the company. However, up to five percent holdings held by employees is permitted to comprise of the twenty-five percent public shareholding spread.
By the introduction listing of securities already issued where no marketing arrangements are needed since the securities for which listing is sought are already of such an amount and so widely held that there is enough marketability.
Beauty Care Limited (BCL) has to submit an application for listing its shares and it has to go through the formalities of the dual vetting and filing process by both the SFC and HKSE. However, in case if the application is made to HKSE only, then it will forward a copy to SFC. Further, HKSE will be the front-end communicator for the purpose of listing. (Soulier & Best 2005:200).
Further, the listing document of an overseas issuer who wishes to have a primary listing in Hong Kong should furnish a summary of the specific regulatory statutory rules or otherwise of the overseas